State pension chaos causes stress and hardship for people turning 66

A lot of women are understandably asking if they missed out on thousands of pounds in state pension, and we explain how to find out and what to do if you are owed money by the DWP.

The National Audit Office has confirmed the devastating blunders made by the DWP in a scandal we uncovered alongside our columnist, former Pensions Minister Steve Webb.

More people could feel under pressure to unlock their pension in the coming months – and, under the pension freedoms, those aged 55 and over have flexibility as to how they take their cash.

Trade body UK Finance data shows some 52 per cent of new mortgage lending is going to borrowers who will still be paying back the loan after their milestone 65th birthday.

One in five or some 1.25 women are living in poverty, says Age UK. Fewer retired men struggle financially in old age, but one in six or around 860,000 are also badly off.

I live only on the state pension. After the first year of increased NI contributions which I presume I will not have to pay, will I be liable to pay the new care tax that will be introduced?

People surviving on the basic state pension face an even tougher future after the Government broke a pledge to protect them from the rising cost of living. Toby found his experience discomforting.

The retirement wishlist of over-50s is taking holidays, gardening, spending time with friends and family, enjoying hobbies and playing sport. new research shows.

The minimum contribution may be 8 per cent of salary, but at some workplaces it can hit more than 20 per cent of salary, explains Becky O’Connor of Interactive Investor.

Former Pensions Minister Steve is This is Money’s Agony Uncle. Here’s where you can check out all his previous columns to see if any involve issues affecting you.

The Department for Work and Pensions has hardly covered itself in glory after it emerged last May, that potentially thousands of wives and widows were not receiving the pension they were entitled to.

Shambolic service at the DWP means thousands of new retirees are having to wait months for their state pension. Former NHS worker Alison Maynard (pictured) first applied for her pension in February.

The Office of Public Guardian and Ministry of Justice want to simplify and speed up the process by eliminating paper applications and the need for an independent party to witness signatures.

The Association of British Insurers says the proposals set out in a consultation will cause ‘enormous confusion for pension savers.

After we exclusively revealed a service meltdown at the DWP, despairing elderly people trying to get payments started or end deferments have inundated us with stories and pleas for help.

Nearly a third said they were delaying retirement to save more towards their pensions, while 18 per cent were making up for lost savings caused by the pandemic.

We have been married for 53 years and I paid the reduced National Insurance married woman’s contributions so therefore my own pension is very minimal. I would appreciate your advice.

Pensioners who thought that their state pension would be protected by the triple lock are furious that this promise is now to be broken. Ian Barratt believes the Government cares more about business

The watchdog told bosses this week it was ready to wield its enforcement powers if they fail to sign up workers and to pay their share of contributions into pensions.

Delays and slip-ups mean pensioners finally entitled to the benefit have been left without any income for weeks. And those that try to get answers on the phone have been made to wait for hours on hold.

The Prime Minister deserves credit for seeking to deal with the social care crisis, but now we need to keep a very close eye on what the plan for the money is.

Nationally, more than one in five adults has received money via an inheritance, rising to nearly one in three among those aged between 65 and 74, research claimed.

Having a genuine understanding of how you want to live in retirement is an important consideration for everyone, regardless of their age.

Boris Johnson yesterday announced a tax raid on workers and investors to finally tackle the care funding crisis. But how will it hit your pocket, and is there anything you can do to soften the blow?

If I cash in my private pension does this mean that it will affect how much I will get from my NHS pension when I retire due to the MPAA?

Boris Johnson today announced a manifesto-busting tax rise to pay for a major overhaul of the nation’s social care system and to boost the NHS.

Around 46 per cent of people approach retirement with not enough savings for a rainy day, according to a survey of 10,030 UK adults carried out in June.

We are told to be prudent and plan for our own retirement and older age, but that’s pretty tricky if we don’t know what we would need to pay for social care.

A string of readers have contacted us to report unexplained delays, frustrating waits and being cut off on the phone, and staff repeatedly asking for the same information.

My late father died intestate in January. His only asset was his home, which has been valued at £240,000. Our mother passed away prior to my father and she had no will.

I am due to retire very shortly and have to decide how to take my council pension. It’s not large. I can have a pension of £3,600 a year or take out a lump sum of £15,000 and get a smaller pension.

While this partly reflects the fact that we are living longer as a society as well as a rise in the age at which one can claim state pension, it is also because some are approaching retirement poorer.

Unmarried parents will finally be entitled to bereavement benefits if their partner dies, thanks to changes in eligibility rules. But charities are warning that 2,500 families will still miss out.

Three years since a Supreme Court ruling, the Government has still not given cohabiting families the same access to bereavement support payments as those where the deceased was married.

Nearly half of over-50s who want to live overseas would choose Spain, while a fifth prefer France which takes the second spot, followed by Portugal, Italy and southern Europe.

Around 2.1million Britons receive less than £100 a week in state pension payments, but there are a number of ways you can potentially boost your payouts now.

When retired judge David Page (pictured) hung up his robes this year, he planned to dip into his private pension pot with The Prudential so he could gradually clear his mortgage.

Britons are in danger of squandering their inheritance by keeping it vegetating in bank accounts paying little or no interest.

I am 56 and my company is paying 8% of my salary into a pension for me. Please advise if taking out a personal pension with Scottish Widows would be good or should I add to my workplace pension?

Defined benefit pensions are among the most generous available and offer a guaranteed income for life. Most employers have stopped offering this gold-plated option.

Even after years of the triple lock, for both younger and older pensioners the state pension is still lower than in 1979 relative to earnings, says Ros Altmann

Savers are on track to have half the retirement fund they could after choosing cash over stocks for their nest eggs, research for Money Mail has revealed.

Will the time I was looking after my child be counted towards the 35 years of National Insurance contributions I need to get my full state pension, and how does the credits system work?

A big increase is backed by an overwhelming majority of our readers who voted in a poll to say the ‘triple lock’ promise to pensioners should be honoured in full.

An oft-cited measure, which looks at how far the state pension goes in replacing an average salary in different countries, does not tell the whole story. – we take a look.

I receive Personal Independent Payment and Employment Support Allowance. My wife receives Carer’s Allowance. Will my benefits disappear if I apply for a state pension?

Someone told me that with profits pots are hindering my fund and I should move them into a fully flexible Liverpool Victoria account but it will cost me £2,500 to do this.

A single person wanting to retire at 55 on a £13,000 annual income would need to save £496 a month if they started paying into a pension at 25, according to analysis by robo-adviser Nutmeg.

Lasting power of attorney allows people to appoint someone they trust, usually a family member or friend, to take control of their affairs if they fall ill.

Many are focused on family, with 23% saying they would help children and grandchildren buy a home of their own, and 15% intending to pay towards the education of the younger generations.

I need some guidance on whether to take it as one lump sum, part lump sum and annuity or simply leave it in for further growth. How big is the risk to keep the fund invested for some time?

When we divorced he hired a solicitor and I could not afford one. He tried to get me to sign a financial order or something but I refused. Lawyer Laura Phillips, pictured left, replies

HM Revenue & Customs yesterday confirmed that the minimum age at which a saver will be able to access their pension pot will rise from 55 to 57. The change will come into force in April 2028.

Women Against State Pension Inequality said the findings reinforced what it unfortunately knew all along. and has renewed calls for compensation to women who were affected.

A third of people think their parents will need to pay for care later in life but many fear they lack the means to afford it.

It does not feel logical to reduce my personal allowance to get the taxes in one instance and then charge me tax on the state pension again in my return.

Blame for the scandal, uncovered by former minister Steve Webb and This is Money, is laid on ‘process and control issues including poor staff training, instructions and quality review’.

A ‘woefully’ out of date calculation used by the taxman allows people with final salary pensions to retire on much higher incomes without being hit by charges.

Our readers are enthusiastic to see the commitment fulfilled, voting nine to one in favour in our ongoing poll, and pensioners point out that they struggle to make ends meet in retirement.

Grieving families who have been waiting months for probate face yet more delays after it emerged their loved ones’ wills have been lost by the Essex firm we exposed as being at the root of the backlog.

A distortion to average earnings triggered by furlough and job losses in the pandemic could see an 8 per cent rise from the triple lock – and that has led to calls to cut it.

It wouldn’t be surprising if people consider having deputies to be harmful after hearing Britney Spears’ story. But in the UK they are well supervised, says a lawyer..

Withdrawal charges were cut to 20 per cent from 25 per cent for a year in order to avoid penalising people who urgently needed cash if they lost jobs or fell on hard times during the crisis.

Do I still need to do this or can I cancel him but then just use him if and when I need him and pay a one-off fee instead?

Chair of work and pensions committee says present law is ‘toothless’, and allows ‘scammers to advertise with impunity while tech giants line their pockets from the proceeds of crime’.

If the triple lock is honoured it could see a huge state pension rise this year triggered by furlough, job losses and pay cuts. But a deal’s a deal, right?

Some councils are wrongly turning people away or giving out duff information, while many either have no details about public health funerals on their websites or don’t provide contact details, a charity found.

Private sector workers only get half the amount of pension pay that those in the public sector do – before they are hit with punishing tax bills, our investigation reveals.

The pension freedoms introduced in 2015 give savers aged 55 and over free rein of their retirement savings. More than 1.7million savers have now taken their pension out in full.

Many people aged 40-55, dubbed Generation X, are saving inadequate sums for a decent retirement, while one in four will rely on the state pension or have no savings at all., according to a new report.

The documents were sent to me by the broker and I noticed a section where it stated that this was not an advised sale and that the commission rate was 2.10%..

The Government tops up pensions as an incentive to save for old age, but there are annual and lifetime limits and if you go over them HMRC will claw back some of your savings.

In one case, the Department for Work and Pensions was repeatedly asked to review a retired teacher’s £10 a week state pension from 2017 onward.

Receiving an increased state pension and a lump sum will mean a financial reassessment, says a legal specialist in care funding.

An inheritance tax liability could arise, depending on individual circumstances, and there could be complications in sorting out estates where this has occurred.

Women, the self-employed, single people and lower earners are most likely to admit a lack of knowledge about pensions, according to the survey by Hargreaves Lansdown.

A report reveals a string of frustrating errors made at the Exela Technologies office, where staff are tasked with scanning wills and uploading digital copies onto a system to be processed.

The nation’s pensions pay divide is laid bare today. We have ranked the UK’s top pensions pound-for-pound – revealing that the most generous is the NHS scheme which pays £10 for every £1 saved.

If I am entitled please ‘guesstimate’ how much, also whether I can have it backdated to my pensionable date and whether I can ask for the backdated amount to be paid in one lump sum.

The charity is calling on the Government to oblige banks to guarantee access to cash for everyone, and on shops and service providers to accept payments in a way that meets customer needs.

Parents writing wills should avoid creating unnecessary trusts for their children unless they are disabled or otherwise vulnerable, or stand to inherit large sums of money, a law firm warns.

The average age people expect to get shot of their mortgage is 59, new research reveals. But what can you do to avoid mortgage debt in retirement?

Former pensions minister Baroness Ros Altmann said the research indicated younger people tend to believe they have been disadvantaged by a lack of financial education.

Slashing the lifetime allowance from just under £1.1m to £800-900k, a massive cut in pension top-ups for higher earners, and new taxes on employer contributions are reportedly being mulled.

The impact of lockdown on personal finances has been felt most keenly by the 16-24 age group, says chartered financial planner Kay Ingram of LEBC. She explains how the older generation can help.

I am due to get my state pension in October this year at the age of 66. My late husband passed away in September 2018 at the age of 64. Will I be entitled to any of his pension?

The elderly could get a bumper increase in their state pension next spring due to temporary wage distortions caused by the Covid-19 crisis.

An estimated 920,000 pensioner households are missing out on pension credit payments worth up to £1.6bn a year, according to Government figures.

After being made redundant by British Airways last year, I have retrained as a teacher. I have two BA pensions and am wondering whether to move both or either into the teachers’ scheme.

The Parliamentary and Health Service Ombudsman is investigating claims that the Government bungled its communication about the rise in the state pension age for women.

I have a pension currently worth £150,000 and contribute £16,000 to it annually. I am concerned about hitting the limit and the tax implications.

The pensions giant, which will offer this option to 1.5 million savers, says there will be no additional charges for ‘in-scheme drawdown’ and you can transfer in other pots if you want.

I feel that my ex was cheated. He died believing I would get a little cash from his pension.

Those who run their own businesses have sacrificed pension payments to make ends meet – but unless they boost their pots soon it could cause lasting problems for their financial prospects in retirement.

Taking a five-year career break to look after ill or frail relatives can set you back £150,000, if you earn the UK average annual income of around £29,000.

A couple would have to save private pensions worth £154,700 between them to hit their retirement target, while an individual would need to build a pot worth £192,290, according to the consumer group.

Does your granny, grandad, mum, dad, auntie, uncle, friend or neighbour struggle to make ends meet? Ros Altmann, campaigner and former Pensions Minister, explains how to help them.

I have triggered the money purchase annual allowance, giving me only a £4,000 tax free pension allowance a year going forward. I have now got a Government job with a defined benefit pension.

Savers collect a string of pension pots during their working lives but only one in four have merged any of them, new research reveals.

In the generation now approaching retirement, which has not had time to reap the full benefits of auto enrolment, women have around £43,000 in private pensions and men have around £82,000.

Families and friends who have a loved one living with dementia are being urged to consider the unexpected financial risks that can come with the disease.

The reputation of the so far hugely successful auto enrolment initiative to get people saving for old age could suffer a huge hit if workers belatedly found their entire pots had been eaten by fees.

A fifth of people say their parents definitely haven’t made preparations or drawn up any documents relating to their death, according to research by the investing platform Hargreaves Lansdown.

Financial advisers say clients are increasingly concerned about how they may be able to pay for care while research found just three in ten people had set aside cash or had a plan to fund later-life care.

The Parliamentary Ombudsman will not investigate grievances from wives denied thousands of pounds in backdated payments from the Department for Work and Pensions.

A number of women received phone calls from the Parliamentary Ombudsman, telling them it will not intervene in decisions to only hand them a one-year backpayment.

Is it more financially viable to take the 25 per cent lump sum (it would be around £100,000) and just put it in a bank account to gain the tax-free element?

Some people saving into pensions may be facing a retirement catastrophe because they are being given a wrong idea of what money they are likely to require for old age, claims one firm.

Automatic enrolment into workplace pension schemes does not currently encourage contribution rates that rise with age, the Institute for Fiscal Studies says.

Analysis reveals that more than 250,000 people over 70 are not collecting any state pension whatsoever. Yet many will be entitled to claim at least £82.45 a week – simply because they are over 80.

I can’t get pension credit because we are classed as married and his pension is taken into consideration. When I try to give him my tax allowance I’m told I cannot do that because we’re not married.

A report by Interactive Investor and LCP suggests these projections could be wildly optimistic. What’s more, there is little consistency in how pension providers calculate projections.

I have worked for six years longer than those on original state pension, but I am now in effect £140 a month worse off because I cannot claim this benefit! How can this be classed as fair?

As many as one in eight workers aged over 50 cut their pension payments due to the financial pressures of Covid-19. If they reinstate payments now, the impact will still be contained.

When I am 55, can I take my 25 per cent lump sum and put it in a Sipp, as this would give me access to many more investment funds than the handful available in my defined contribution work scheme?

One in five retired people have explored putting savings in financial products they would not normally consider to get a higher rate of return, new research reveals.

I have returned the statement for correction but I am worried sick as to why my state pension has been reduced in this way. I am 84 and live alone and only just now make ends meet.

Standard Life Aberdeen says a retiree would need a pension pot of around £390,000 on top of their state pension income to cover the £21,000 spend over 30 years.

Stockbroking experts from Killik & Co explain what to consider when investing at that age, and the contingency plans your father should put in place if he becomes unable to handle his own affairs.

All my mother’s accounts were closed and the money transferred, but the bank will not give details. I don’t get it! How come she could just help herself to everything and what can I do about it?

He uses the pension as the bond between us, because he knows my financial situation. I truly cannot stay because of this. Lawyer Steven Gasser, pictured left, replies.

There are two beneficiaries, my sister and her daughter who is also the executor. Do you think it is possible for me to make a claim for a share of the will? If so what do I do?

Do executors have the responsibility to sell the house to clear the debt, thus making the right to reside clause and trust irrelevant? Lawyer Helen Taylor replies.

Pensions are often a divorcing couple’s second biggest asset after the family home, and are sometimes worth even more, yet are frequently overlooked in financial settlements.

Pension freedoms mean retirees can now invest their savings how they like rather than buy a stingy annuity. But what do you need to consider and plan ahead for when funding retirement this way?

Why is there no protection in law when there has been probate fraud? I spent £2,000 on solicitors fees advising my estranged brother of the will. He chose to ignore all correspondence.

My daughter is getting divorced from her husband. They have been married for 18 years and lived together before that for seven years. He wants to keep their pensions out of the divorce.

I asked for a copy of the ‘deferred payment arrangement’ but it’s unsigned. The council has not formally asked for payment. Lawyer James Urquhart-Burton replies.

My husband says I need to reduce the offsetting figure during our divorce as he wishes to draw down all his pension at 55, although he will continue to work and he was 53 when we split due to his adultery.

My sister and I have had lasting power of attorney for our father for a number of years. He was diagnosed with dementia in March and has signed another LPA that he doesn’t remember doing.

We explain changes to the state pension age, so you can find out when you will be allowed to retire

Pension age deadlines are more fluid as older people have gained greater control over retirement dates and finances – but some birthdays are still markers for decisions and action.

My ex-husband contacted me recently because he intends to take advantage of the change in UK pension law, to allow him to withdraw 25% now and the balance in monthly or yearly payments.

My brother and I are left equal shares of his house, but on my father’s death the property is held in trust with the condition that my brother can live there indefinitely, rent free and cannot be evicted.

A selection of Steve’s top columns can help you avoid being scammed, understand the mysteries of the new state pension, and gain peace of mind by making the most of your pension savings.

James Urquhart-Burton, partner at Ridley & Hall Solicitors and an expert in care funding, explains how to make an application for yourself, or a loved one.

James Urquhart-Burton, partner at Ridley & Hall Solicitors and an expert in care funding, lays out the potential grounds for objecting to an NHS refusal and how to make a successful appeal.

In a stinging report, tax officials said people ‘can easily disadvantage themselves’ in a system that ‘appears illogical’, and told the Government to find a way to restore lost credits to parents.

There are many legal ways to dodge the dreaded 40 per cent ‘death tax’ if you want to pass on the maximum sum possible and are prepared to plan ahead.

Thousands are facing a poorer retirement as a result of innocent mistakes over paperwork. Nandia Needham, pictured with husband Martin, could be £20k out of pocket over a 20-year retirement.

The couple managed to convince HMRC they were unaware his filling in the child benefit form could result in her losing state pension in old age, in a case that could help many other parents.

It may not seem like a grand romantic gesture, but making sure your spouse is financially comfortable in retirement, will go a long way towards securing your future happiness together.

Hoard your pension and spend other cash and investments first, to keep your money away from the taxman. That’s the advice experts are dishing out to retirees worried about inheritance tax.

Elderly investors have to balance the need to make withdrawals yet keep a pot as intact as possible – whether to avoid running out of money or bequeath a pension to loved ones.

Grappling with the benefits monster can be daunting, particularly for those struggling with common side effects such as nausea, fatigue and chemo brain so here’s everything you need to know.

Many people put off thinking about their mortality. But there is vital paperwork to sort out before your time comes to an end.

Death is unavoidable – but the way we are laid to rest is still largely in our control. We examine the key decisions you need to make on a funeral.

With-profits policyholders often face an impossible choice about when to take their benefits. Turn down today’s offer and tomorrow’s may be lower. How can you decide when it’s time to leave?

Pension freedom reforms will give people more decision-making power over their retirement savings. But as ever, the more you have, the more freedom you will enjoy.

If you signed up to a work pension scheme but took no further action, your savings are most likely in a ‘default’ investment fund. How do you check if it’s any good?