pension advice service

Pension Advice Pays Out



Posted on: 4th November 2020

When we hear the words pension advice Manchester, we think of money being paid in. But what about when using a pension advice service pays out handsomely?

The individual case currently hitting the news headlines is of a grandmother who claimed back a staggering amount of £82,100 when getting advice about claiming on her late husband’s pension. Even better, she received this amount in a huge lump sum.

Too Good to Be True?

This occurred after an enquiry was made after seeking advice after hearing that married women who hit state pension age before April 2016 should be entitled to a minimum of 60% of their husband’s state pension amount. By being able to backdate it to when their husband turned 65, those underpaid are entitled to a substantial amount of money that has been underpaid.

State pension amounts are based upon National Insurance contributions made each year whilst working or whilst caring or other circumstances. Not only are those entitled to a top up, but also have it backdated depending on when your husband turned 65.

If that was before March 2008 then you can only backdate for one year. However if it was after March 2008, the system was meant to automatically top up the amount, but due to glitches, it has resulted in many women qualifying for large backdated payouts such as the one highlighted in the news.

How This is Missed?

Although not accessible for those in a civil partnership or same-sex relationships, the result comes from a somewhat antiquated law from the second world war.

When the first state pension was established it was deemed that men were the primary earners with women only working a fraction of years in comparison. This resulted in women paying less in National Insurance contributions and married women given a proportion of their husband’s state pension. The ruling stated that if any woman’s state pension didn’t match at least 60% of their husband’s it required topping up to that level.

This has resulted in thousands of women being able to make a claim on their husband’s pensions and qualifying for underpayment to be paid back in full in lump sums of considerable amounts.

Qualifying Women

There are many brackets of women that qualify for money to come to them. Chiefly are married women whose husband turned 65 before March 17th 2008 and never claimed an uplift to 60%.

Other qualifying women are those widows who never saw an increase following their husbands passing or those who believe theirs to be correct but feel they may have been underpaid when their husband was still alive. Those over 80 receiving a basic state pension of £80.45 and divorced women after retirement who may be able to benefit from their ex-husband’s contributions are also eligible to find a lump sum payment due.

Professional Advice

For older generations, the system in place to process this application can be quite complicated, so it is best to utilise the knowledge and expertise of the pension advice service of the best independent financial advisors UK, to guide you through the process and maximise your amount owed back to you.