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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3831
Experience:  FCCA FCMA CGMA ACIS
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My husband is allowed his pension In a couple of years when

Customer Question

My husband is allowed his pension In a couple of years when he turns 55.what does the changes in the budget mean to us regarding this pension?.this pension. Was originally due when he turned 50 but just before then we were advised by his pension providers that be a use of some changes in law then,that it had to be changed to 55 which we didn't understand much at the time either.we get letters e very so often giving g us figures he is due when it's finished,the 2 figures are one saying called a former protected rights benefits and a figure under the title of EXCLUDING former protected rights benefit.what do these 2 figures mean a d what does the other issues mean that I've mentioned above.Please can you help us with these concerns,thank you .Claire
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Thank you for your question, but I must opt out. I never comment on the budget until i have read the financial press the next day and got the full story. As far as I can gather you soon will not be required to buy an annuity which at the moment is compulsory at 75.
Customer: replied 3 years ago.

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Hi thank you for your response.your answer helps but can you also tell me what the 2 figures are for.ie.the protected rights benefit etc as I'm confused about what they mean.Does it mean he will get both amounts.Thankyou for your help I look forward to your response. Claire


 

Expert:  bigduckontax replied 3 years ago.

Sorry for the delay, I have just noticed that you came back to me despite my opting out.

 

Protected rights came about when you gave up your SERPS and a proportion of your pot was funded by a NI rebate. For example I paid into SERPS and my wife inherits 70% of them on my demise. The pension arrangements as a result of protected rights resulted in your receiving a lower pension, but it included protection for your spouse for their lifetime. Although all these Budget changes need Parliamentary approval in the long term with the necessity not to have to buy an annuity just announced things may change. Under those rules you have two pots, but the use of one pot is restricted.

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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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