Pension - I have none and I’m a little unsettled by DHs response!

[EllyRoff]

So last night I got to thinking about pensions and realised I don’t have one! I’m no longer working (I make a small amount of money through art which DH has always been supportive with). I did have an NHS pension when I was working but DH convinced me to come out of it due to the high payments. There was barely anything in it anyway so I received the contributions back. Since then I’ve made very little contribution in national insurance etc.

DH has always said I’ll be fine in retirement as we have his good pension - but last night I thought “what if he died? Does the pension automatically come to me?” Turns out that no - it doesn’t. It goes to a named beneficiary.

So this morning I asked DH if I was named on his pension - he said “don’t worry, you’d get a state pension” !!! I said “what, £60 a week? I have none pension! Am I named on yours?” He said “why don’t you start a little savings account?”

So I’m not named on yours then?? He said “of course you are, I mean - I’ll check but I’m sure you are”. I’m very unnerved by his response - firstly his lack of concern!! Secondly his reluctance to confirm that I’m named on it. He says he’ll check today.

AIBU here? You’d think he’d want me to be ok in his death surely? Especially since it was him that convinced me to give up my own pension. He is 10 years older than me so not massively unreasonable to consider he might die before me.

When you downsize then you need the equivalent pension pot as him but in your sole name and you can make him beneficiary.

Its a hill worth dying on!

This thread is a good example of why people just don't understand disability/long term health conditions...

Like you OP I have long term health issues and it has affected my work and pension.

I was able to work with little issues for about 10 years then my health nose-dived, I has several surgeries and since then I can only manage to work part-time.

The small private pension I have is from the time I could physically work full time and is a tiny 10K.

I can't afford to pay in a pension each month as I need every penny to survive and pay the mortgage and any house repair as a single person on a part-time income.

That's my reality. No amount of pie in the sky planning is going to change it.

Everyone's situation is different.

Make sure you have a serious conversation with your partner to make sure you are the named person on his pension definitely but the people who expect to suddenly turn into a full time worker who is able to save hundred of pounds simply have no grasp of the type of world you and I live in.

I was chatting to our builder about retirement plans the other day. He is 10years older than his wife and said that "She is his retirement plan".since he has "kept her for years", she will just have to step up and keep him now. 😳.

Be careful OP.

I agree that the money released from the house sale needs to primarily go to addressing the inequality in the relative pension availability.

OP you need to be very assertive about this and be clear to your DH that his 'advice' that you opt out of the NHS pension was a very stupid thing to do so as far as possible, amends need to be made.

You also need to do what you can to catch up with your state pension and it is likely that using some of the money either available now, or from the house sale will be a good investment. It is a shame that you've just missed the deadline for buying back extended added years but hopefully your gap won't be too big, as you will have been working at some point, and will have received credits if you have DC or have received benefits due to your illness - as an aside, have you claimed benefits for this if your autism and anxiety has meant you are unable to work?

MSE have advice on this, as it's circumstances dependent. Eg if you are younger, you might have time to catch up due to future contributions, or you can voluntarily pay a small amount of NI due to your self employment as an artist, so that might be the way to go.

https://www.moneysavingexpert.com/savings/state-pensions/

As for the rest of the money, you might need advice on how to get it into a pension or other savings/investment products for you, especially if the amount is very large, say over £100k. Below that you can probably just move it into S&S ISAs over a few years if necessary as well as having some money in cash.

Very common for this kind of thing to be said in jest.

You won’t get the full state pension if you haven’t paid in. Is it pension credit you’d have to claim?

Yeah, you need to sort this out. It’s really silly to have no money in your old age because you gave up work after your husband said you should… and then you didn’t plan for this.

Well…. OP had the opportunity to stay in an NHS pension. She could have worked somehow. Her husband does have a good job and pension, and could leave it to her. But you think the State Pension / Income Support is not enough? I mean, it’s you and I that pay through our taxes. I’m happy to help, but… 🤔

This, if you have paid no NI contributions you won't get the full amount (which is only £12K something per annum anyway). You need to stop asking your husband what he thinks and take ownership of your personal financial situation and get it improved.

If he doesn't provide for you then I suppose it'll be the jolly old taxpayer so you won't starve (may not be the life you're used to, though, which might motivate you to tie him down now!)

It is means tested. You get less if you have savings. Also Pension Credit is a meagre amount. Nothing like as generous as benefits for families. Even taking everything into consideration. And even if you are a beneficiary of your DH's pension scheme you wouldn't get his full pension.

With the “names on the pension” thing

the pensions are set up as discretionary trusts so the naming is just an indication of who the trustees c should pay money to but if someone say puts their mum down when they joined the pension at 21 but in fact died a married man with 3 kids, the trustees would pay the wife. If he was divorced with kids it would go towards the kids.

its best to get it up to date but it’s only an expression of wishes and not binding. (So trustees should do what is fairest/best)

He needs to be nominating you to get his private pension but often it's not the full amount.
Do you have enough NI contributions for full state pension?

You dont state what type of pension DH has but if its a defined benefit pension then any spouses pension is likely to be 50% of DH's pension. As you're 10 years younger than him there may also be a young spouse reduction so the 50% could be reduced even more. Although spouses reductions are becoming less common now.

This. What a staggeringly stupid idea to exit one of the best pension schemes available. What a pair of financial illiterates you are.

I voted YABU because you need to stop relying on a man who convinced you to leave a good pension scheme for financial advice.

Please go to citizens advice or pension wise and get independent advice.

I don’t think it’s necessarily controlling. A lot of people are financially very unaware. Or money is tight and they see no option - I’ve seen MN threads where people have opted out of (particularly) public sector pensions because they need the cash now.
He might be controlling. But he might also be a bit “ahh it’ll be fine, I’ll think about pensions when I’m 50”. Which is not good, but not uncommon when you look at average pension pots. And I imagine a not insignificant number of perfectly decent people just assume that obviously their spouse is listed on it.

If you are not the beneficiary on his pension...who is?

Given he doesn't seem financially savvy (nhs pension!), even if you are named etc, its still his and some pensions let you take our lump sums. There is nothing to stop him drawing down a significant portion of his money and spending it as he wants (yes, this could be a selfish spend but he may also just make a poor financial decision made in good faith, based on his nhs pension recommendation).

In summary, even with the best of intentions, you may find yourself penniless.

You may be unable to work, or you may have found that job untenable, but I'd strongly encourage you to seek some financial independence.

@Greenartywitch i've been unable to work since my 40's and am never likely to work again....but my husband has paid into a pension on my behalf. We are extremely fortunate to be able to do that but being married means being a team and even if we hadn't been in that financial position , we would have been discussing ways for both of us to have provision of some sort....not for a husband to have his own pension and then go to his wife "oh you can survive on the state pension" even when they may not have full contributions.

OH and I have occupational pensions through the same provider and we have nominated each other for the survivor pension…….otherwise, on death, the payments would cease completely.

I also think it was irresponsible to bin the NHS pension and if your NI contributions are not made you won’t get a decent state pension either. I get the impression that your OH isn’t particularly clued up on what will happen to his pension if he dies…….best to get that in order sooner rather than later and certainly don’t let him put you off……make it very clear that you need to feel financially secure.

And, as an added security bonus, in your position I would be saving every penny I could lay my hands on.

Perhaps see an independent financial advisor together, in order to prepare for your downsizing and retirement.

The information here is reliable.
https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser

If your DH really won’t agree to protect you in your old age, I would seriously consider divorcing him, then you should be entitled to half the assets - including his pension and proceeds from the house sale.

This, use some of the money released from downsizing to try and improve your state pension if possible. If I were you I'd get a Financial advisor to do a plan for you. You really need a job/your own income and a plan. You are in a very precarious position.

Even if you are named as his pension beneficiary you won’t get all of it, but half as I understand it. You need to start providing for yourself.

Pension credit is only around £3pw less than full state pension now: £227-odd v £230-odd.

It's one of the reasons pensioners were so pissed off when the WFA was restricted to pension credit claimants. It mean that pensioners who had never worked got more from the state than those who'd worked all their lives.

This is one of those cases where you may well be better off divorced than widowed. To be honest I wouldn't trust him at this point. He doesn't have your best interests at heart. He should never have persuaded you to come out of that pension scheme and if you stopped work he should've insisted on paying towards a pension for you.