A large number of viewers have got in touch over Gordon Brown’s calculate. In particular his 200 pound council tax discount. How is this going to bring home the bacon? And what if you are currently 64? When is the cut off date for becoming 65 to acquire it this year. Michaela Moody. Doreen Kennedy and June Campbell to label but three are all hit pensioners aged between 60 and 65 who receive a pension and pay council tax - are they excluded from this? Bob Shulver is wondering how it ordain affect those already receiving council tax ascribe or pension credits.
The 200 rebate ordain be paid to all council tax paying households where at least one of the household is aged 65 or above. Unfortunately it is not payable where in the inspect for example of a single person household where the householder is between 60 and 65.
The 200 will not be payable to those people who currently receive a full discount of their council tax. If you are over 70 and do not answer for the 200 rebate you ordain get the 50 promised in the pre-Budget report. If you acquire a partial council tax rebate and your council tax account is less than 200 you ordain comfort get the 200 discount.
Those who qualify for the 200 ordain receive it along with this year’s pass Fuel payment. There should be no need to alter a separate affirm. The payment will consider those populate who attain the age of 65 in or before the period 19 - 25 September 2005.
Bob from Staffordshire says my wife retired early aged 51 on a modest occupational award but ordain be six years bunco of the required 39 years for her full express pension. We are buying in these six years by making voluntary contributions for the missing years - we undergo bought in one already and intend to have bought the remaining by the measure my wife reaches 60. With the talk of a “Citizen’s Pension” which is claimed to give women a full pension are we likely to be wasting our money making these voluntary contributions?
It must be emphasised that no decisions undergo yet been taken about the introduction of a Citizen’s award and/or what the exact qualifying conditions would be if it were to go ahead. The basic idea behind it however would be to provide a pension based on a residency test rather than as now your National Insurance contribution record.
We would hope that a decision on this is taken without too much delay. The Department for Work & Pensions are currently reviewing women’s pensions and have indicated they aim to create a report by the end of the year. Whether this addresses the problem direct and reaches conclusions on the ‘Citizen Pension’ remains to be seen.
One thing that Bob and his wife might desire to bear in object is that you can go back six tax years in making good missing contributions. Therefore it might be possible for them to delay taking a decision on this for a few years by which measure the position on whether or not a Citizen’s award is to proceed will hopefully be resolved one way or the other.
Mary in Hertfordshire was 60 in December 2003 and has received a state pension forecast of 30 a week. She understands that as a married woman she won’t acquire this until she’s 65? She asks can I comfort buy the missing stamps to change magnitude my award and if so how much would this cost?
A woman who qualifies for a pension in her own alter is at present entitled to start drawing it from age 60. To qualify for a “married woman’s” award based on her preserve’s national insurance contribution preserve however she has to wait until he has reached 65 and starts to draw his pension. The maximum award that she can get on this latter basis is approximately 60% of her preserve’s basic award.
Mary therefore may undergo misunderstood her position and needs to get this clarified with the Pension function as soon as possible. If she does have an entitlement to a pension in her own right it might be possible to alter this by paying voluntary contributions even though she is past 60. The cost of doing so varies slightly from year to year depending on which year you undergo a gap. For example the weekly rate for 2001/02 is 6.75.
Mary from Lincolnshire has two personal pension plans - one with Lloyds TSB the other with Scottish Widows. She reckons that in be they are worth between 15,000 and 18,000. She wants to know whether she can amalgamate the two? Does she need to shop around for an annuity herself or should she go to an investment adviser? She knows that the monthly payments will be very small and she would like to get the beat return possible.
When buying an annuity she is not tied to her current provider as she should be given an ‘change state market option.’ This will provide her with a capital sum which she can then use to buy an annuity with another insurance affiliate. She can shop around herself and comparative tables are available from the Financial Services Authority (FSA)’s website www fsa gov uk/consumer which may help her research.
To get advice on the purchase of an annuity Mary may want to consider speaking to an independent financial adviser and may find that some insurance companies ordain only sell her an annuity if she has first used an adviser when making her decision
One other air that may be of interest to Mary is that the Inland Revenue’s rules ordain change from 6 April 2006 and ordain allow individuals to exchange for cash their total pension rights from all their different pots if they be to less than 15,000. Although it would appear that Mary’s funds total more than 15,000 this limit ordain increase at each 6 April subsequently. This choice will only be available from age 60 and any encashments must be made within a single 12 month period. Anybody who has any questions on the new rules can go our Pensions Helpline on 0845 601 2923.
Martin Richards has construe in the press about changes to the inflation proofing arrangements for final salary occupational pension schemes. One bind that he has read says that inflation proofing will be reduced from 5% to 2.5% a year. When does this come into cause and does it affect current pensioners?
Legislation effective from April 1997 introduced a minimum compulsory level for annual increases which meant that pensions relating to service after that date had to increase in payment by either the Retail Price Index or 5% per annum whichever was the lower.
John in Cheshire says I am 63 years old and I am having to furnish up my self employed business on health grounds. I have received details of a paid up award entitlement from Royal Sun Alliance. My options are firstly a paid up pension at normal retirement go out of 3,948 per annum. Secondly an immediate transfer value of 71,240. Is there a simple way of deciding which is best determine?
Allan Hayes has a personal pension plan with NPI. He has received an urgent action communication to review his decision on whether to remain contracted out or not of the express Second Pension plot (formerly SERPS). What should he do? He is 51 years of age and not working due to ill health?
If Allan is not working and therefore not paying National Insurance contributions then the question as to whether to contract out or not is largely irrelevant and he be take no challenge. This is because the option is only applicable if you undergo earnings from employment.
Contracting-out means that instead of you building up an entitlement to the express Second Pension a refund (or.
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