2013 is to be a profound year for me as at the time of my 2nd review in June I will just be receiving state pension. I do not intend to give up my part time job so annual income should increase by approx £7300. Notwithstanding tax increase I should still come away with about £5800 more than now.
My first question is how much of this can I expect to take home after increased payments to IVA. Secondly if I decide to retire at any point while still in the iva, will the payments revert back. Please note that the state pension currently is not far short of my work income at present so would be able to service the iva.
Also there will be a very small pension from the current employment and a choice to take approx £600 tax free gratuity for reduced pension. If I take this will it be subsumed into the iva or will I be able to keep it.
I do understand that each agreement is different but just ask for a general outlook before speaking to IP.
As a general rule 50% of income increase will be taken into the IVA. Some IP's will take this immediately, some ( as used to be general practice with income increases, as opposed to overtime etc) will wait until the annual review and the increase will follow from then.
There is discretion for the payment to be reduced by up to 15%, based upon the original payment, so, should you lose this extra income then payments can be adjusted. This, of course, is at your IP's discretion and not an automatic right (that only applies to increases !!).
The gratuity from your pension might be captured, unless, like mine, your proposal excludes your pension provisions.
As you so rightly point out, this all depends upon your particular wording, as well as the discretion of your IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think that your circumstances ought to be assessed when you start to receive your pension, and how much you will need to increase by will be dictated by the terms of your specific IVA proposal.
Well done to you for wanting to continue working - as this is not just about money but also feeling useful and getting social interaction outside of the household. Just be careful you don't end up doing too much - as if your IVA payments increase you will be working past retirement for effectively only half your salary.
Your pension income will be taken into account as it forms part of your disposable income as well.
As usual Melanie wise words and thanks for the boost, I still feel 25 between the ears.
I do appreciate that pension will be taken into account but as long we receive even 50% it will allow us to live a little better for the next 4 years than we have for the last 2. My main concern is if I do give up in a couple of years will the payments revert back as they are now more or less, because although it's tight we can live and get to the other side of this IVA whatever it takes. And we won't be back.
