Retirement expert advises people to learn about state pensions
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The Compensation Experts analysed Google search data to reveal the most Googled pension questions asked by Britons over the past 12 months. The issue of inheriting the state pension was a key one for many.
“Can I inherit my husband’s state pension?”
The Compensation Experts said: “One of the most pressing pension concerns in Brits is in relation to spousal payments, with 2,620 typing into Google ‘can I inherit my husband’s state pension?’.
“If your spouse dies, you will be eligible to inherit at least part of their pension plan.
“However, you must have been married before April 6, 2016, and your partner must have reached state pension age before April 6, 2016 OR would have reached state pension age by this date.
“If you remarry before you reach state pension age, you will not be eligible to inherit your partner’s pension.”
Britons may also be able to inherit part of their deceased partner’s ‘Additional’ state pension if their marriage or civil partnership with them began before April 6, 2016.
Their partner must have reached state pension age before April 6, 2016, or have died before April 6, 2016 but would have reached state pension age on or after that date.
The extra amount will be paid with the inheritant’s state pension.
New state pension guide could explain exactly why you are getting less than you expected [GUIDE]
Martin Lewis: Can you beat the hikes – BT, EE, Plusnet, Vodafone, Shell and more? [MARTIN LEWIS]
State pension age ‘to soar past 70 as axe falls on triple lock’ [ALERT]
In addition, Britons may inherit half of their partner’s protected payment if their marriage or civil partnership began before April 6, 2016 and:
- Their state pension age is on or after April 6, 2016
- They died on or after that date
“How pensions are divided in divorce”
Divorce also brought about many financial queries, including “how pensions are divided in divorce”, which is asked by 840 Google searchers each year.
The Compensation Experts complained: “Firstly, you can make an informal spousal agreement to protect each of your pensions in the event of divorce.
“Alternatively, there may be a split.
“This can either come in the form of a pension transfer, or one of you can offset the value against other assets you share.
“For instance, you may agree that one of you gets a greater share in the family home in exchange for the other keeping all of their pension.”
“Are pensions taxable?”
With 5,760 Google searches last year for “are pensions taxable?”, Britons are clearly concerned about the tax implications of taking out a pension.
The Experts continued: “Your pension is treated as earned income and is subject to income tax.
“However, it is important to remember that you’re usually able to withdraw 25 percent of your pension pot as a tax-free lump sum as soon as you turn 55.
“After this, you can continue to withdraw the remaining 75 percent, but you will have to pay the standard tax rates (as well as any withdrawal charges outlined by your pension provider).”
Source: Read Full Article