Providing income for your widow, what have you done?

[johncar54]

Providing income for your widow

I have recently discovered that widow’s pensions have virtually been abolished in UK, if the widow is under UK pension age.

A person under 59 at the time if the death of her husband gets a reduced amount (on a sliding scale) for each year they are aged under 59. In any case the payment will be a bereavement benefit max £2,000 and max two years pension. After that the widow will need to wait until she is pension age (my wife born 1971 means when she is 65) before she can draw a permanent pension.

Faced with this, I wonder how those affected have planned to protect their surviving wife. Of course if you live in UK there is always Social Security benefits for the very poor. As we live in Spain we don’t have that. I am still seeking a best option.

I should be interested to hear what others have done to overcome this problem, and I am sure any advice will be helpful to many.
John

PS Having looked at several web sites and called a couple offices, I am not sure that the ages I have quoted are 100% accurate but the gist of what I have said is correct.

[Bluebirdjones]

A number of things (to consider, put in place, think on).
Options include .......

1. If you worked for years in the UK, then it's likely you'll have a company pension.
This can be passed onto your widow (at a reduced amount), but you'll have to stipulate
this to the Trustees.

2. Many in the UK now see their house as their "savings", their "nest egg". I assume
that you have a house in Spain .... and the question has to be, if you are not around,
is it likely that she will continue to live in Spain ? Eur250-300,000 will go a long long way
in the Philippines
(Eur70,000 for house ..... Eur200,000 in the bank = about Eur6,000 per year interest = 365,000 peso)

3. A term life assurance policy. Something like £20pm should cover you (ie her) for a
£20,000 pay-out for the next 10yrs.

[johncar54]

1. If you worked for years in the UK, then it's likely you'll have a company pension.
This can be passed onto your widow (at a reduced amount), but you'll have to stipulate
this to the Trustees.

I am a retired police officer (Chief Inspector) I was surprised that the widows pension in our case, as I remarried after retiring, is only about £50 p.w. So not much to assist there.

As I am 69 I did not think life insurance would be an alternative.

I would expect my wife to want to continue living in Spain.

Although it might upset some, I am worried that my wife's family would do their best to get their hands on any money I leave my wife.

[Bluebirdjones]

Re: Life insurance .... yes, I factored in your age.
Policies are available.

Any monies could be left in a Trust Fund... perhaps with a stipulation that
only 10% the principal can be withdrawn on an annual basis. A Bank or good
Financial Lawyer could give you advice on that.

E-mail if u want to ..... my yahoo address is easy to puzzle out

[johncar54]

Hi Bluebirdjones I failed to work it out. I sent you a private message on this web site

[Arthur Little]

My first wife died about a year and a half before I retired early from local government service. A widow's pension from my former long-term employers' superannuation scheme WOULD'VE been payable to a subsequent spouse on my death HAD I remarried - and then died - WITHIN A LIMITED PERIOD [I cannot remember *how long exactly] of my retiral. Anyway, *it's immaterial now - I only remarried last December - and, unfortunately, my hard-earned occupational pension will cease to exist the moment I stop breathing. So in my case, such an option is no longer an issue though, thankfully, Myrna is still of an age to resume her teaching career here (should she so wish) ... subject to her successfully negotiating the maze of red tape that is the Scottish Education System.

Thanks John for introducing this topic. It provides me with much food for thought - not to mention the grass roots for another thread I've been contemplating posting for some time.

Arthur

[johncar54]

Hi Arthur, I hope someone has some good advice on this subject.