www.iva.co.uk

Hello! I am in an IVA, and on the verge of my second I&E. During the course of my first year, I became eligible for the old age pension, turning 65. I have opted not to draw it until I absolutely have to, as I am still working. Questions:- (1)What will be my IP's attitude towards this decision? (2) How might things change if I lose my job and have to start drawing the pension?

Hi there, I'm sorry I haven't got the answer to your question but will keep this bumped up for someone who may have. Your best bet is to run this by your IP to get some case specific advice.

What was discussed prior to you signing up to the IVA regarding your options at 65 and pensions?

Probably best talk to your IP about not drawing the state pension.

Paul

Hi and welcome.

I would think that he could defer it - if he takes the pension whilst working he will be paying a lot of tax so I doubt he would be in a position to pay a lot extra across.

He does need to speak to his IP though and seek advice.

We have hubby's pension provision written into ours, it states that once he receives it the Income will be reviewed and our payment adjusted accordingly. He is eligible in Year 4 for us

Hubby is due his this year - unless we can get payments lowered then we are stuffed!

Did they discuss your hubby's pension with you pre-IVA Jan? x

I did not think that you could defer taking the State pension? Is this so?

One thing to watch if you keep working past 65, is that you will no longer pay NI on your salary, so your disposable income will increase as a result and your IVA payments are likely to increase as a result. What benefit is there to you in deferring your State Pension if this is actually possible?

You can defer it Mel. Hubby has had all of his stuff through and we did see if he could do this and carry on getting his incapacity until the end of the IVA but he couldn't.

Lesley - no it wasn't discussed and to be honest we never gave it a thought at the time. Just grateful I suppose to get the IVA approved.

Mel you can defer your state pension and get a slightly higher pension (not a lot more but a bit) when you do claim it. We didn't even think about doing that as to me that would seem like we were deliberatly trying to stop our creditors getting more, because hubby has a extremely small income now (£86. per month) when he gets his pension it is going to increase our payment by quite a bit. Hopefully though they will only take 50% and we will have a bit extra as well.

We're the opposite! Because hubby has been on incapacity benefit, he will take a serious drop in income when the pension kicks in which is why we wondered whether he could carry on with the benefit once he turns 65.

He can't though so we are going to have to try and work this out.

Don't forget Pandy, if you take your pension in addition to getting a salary, you will be taxed quite heavily on it. This is something else that will happen to us.

Jan, hubby doesn't have an income at the moment just the small occupational pension from his previous work, he is not entitled to any other beneifts as they are all means tested and my income is just too high. So for us, him getting his pension is going to be a big increase in our finances, we estimate we are going to be over £600 per month better off going by the Government gateway pension forecast. They had better not try and tax me for his pension otherwise there will be trouble [:D]
I am not due my pension until 2028 hopefully the IVA will be over before then [:D][:D]

Edited to add, hubby is 14 years older than me , he will be 80 before I can retire [:(]

They won't tax you for his! My hubby will be at least £250 a month worse off when he gets his.