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IR ESA & Occupational Pension
- JJ
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4 years 10 months ago #232820 by JJ
IR ESA & Occupational Pension was created by JJ
Hello Team
I am trying to find out how entitlement to occupational pension can effect someone's entitlement to Income Related (means tested) Employment & Support Allowance.
With the changes in the law in relation to private or occupational pensions there is opportunity for people who may be in receipt of IR ESA to create a private pension pot,(from previous employment) now at the age of 55.
Would these people have the same rights as other people to reserve this pension for later life,? or would it be classified as current income that would have to be used to replace their entitlement to Income Related (Sickness Related) Benefits ? Would this also have a knock on effect on their entitlement to Housing Benefit ?
I hope you can help.
Thank you
I am trying to find out how entitlement to occupational pension can effect someone's entitlement to Income Related (means tested) Employment & Support Allowance.
With the changes in the law in relation to private or occupational pensions there is opportunity for people who may be in receipt of IR ESA to create a private pension pot,(from previous employment) now at the age of 55.
Would these people have the same rights as other people to reserve this pension for later life,? or would it be classified as current income that would have to be used to replace their entitlement to Income Related (Sickness Related) Benefits ? Would this also have a knock on effect on their entitlement to Housing Benefit ?
I hope you can help.
Thank you
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4 years 10 months ago #232826 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic IR ESA & Occupational Pension
Joy
Welcome to the forum, you might want to have a look at the following FAQ which explains where everything is
Welcome to Benefits and Work
Subject to the terms and conditions of your pension you are not required to take the pension until you reach Pension Credit Age, for a woman this their State Retirement Age and for a man it is the SRA of a woman born on the same day as them.
If you do take part or all of the pension then any lump sum will be treated as capital and will be subject to the normal ESA(IR) rules
Asset and savings rule for ESA(IR)
Any regular pension payments will be treated as income and deducted from your ESA(IR) £ for £.
Gordon
Welcome to the forum, you might want to have a look at the following FAQ which explains where everything is
Welcome to Benefits and Work
Subject to the terms and conditions of your pension you are not required to take the pension until you reach Pension Credit Age, for a woman this their State Retirement Age and for a man it is the SRA of a woman born on the same day as them.
If you do take part or all of the pension then any lump sum will be treated as capital and will be subject to the normal ESA(IR) rules
Asset and savings rule for ESA(IR)
Any regular pension payments will be treated as income and deducted from your ESA(IR) £ for £.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- JJ
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4 years 10 months ago #232847 by JJ
Replied by JJ on topic IR ESA & Occupational Pension
Thank you Gordon.
So if a person has arranged a pension pot via a professional financial advisor re: investment & has a draw down facility. (No more than £6,000 per year) This should not be counted as savings ? I am confused as I have been told by a Welfare Rights officer, that a person in receipt of means tested benefits has no right to preserve a pension pot until they become state pensionable age, but they have to access it to bring themselves off benefits. I find this information quite shocking.
Thank you for any further clarification you can give.
So if a person has arranged a pension pot via a professional financial advisor re: investment & has a draw down facility. (No more than £6,000 per year) This should not be counted as savings ? I am confused as I have been told by a Welfare Rights officer, that a person in receipt of means tested benefits has no right to preserve a pension pot until they become state pensionable age, but they have to access it to bring themselves off benefits. I find this information quite shocking.
Thank you for any further clarification you can give.
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4 years 10 months ago #232936 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic IR ESA & Occupational Pension
Joy
Your advisor is wrong about having to take your pension early.
Be aware, your savings and assets will be considered as well as any draw down you might make, so it is the total of these that is considered in regard the £6000.
Gordon
Your advisor is wrong about having to take your pension early.
Be aware, your savings and assets will be considered as well as any draw down you might make, so it is the total of these that is considered in regard the £6000.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- JJ
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4 years 10 months ago #232960 by JJ
Replied by JJ on topic IR ESA & Occupational Pension
Thank you Gordon
So would a person who had to finish work due to ill health, & in receipt of IR ESA be allowed to transfer their defined benefit pension out of the original occupied workplace pension scheme to another scheme.? To keep for state retirement age.(3 years off) With an annuity plan for later life.
Thank you for your help.
Joy
So would a person who had to finish work due to ill health, & in receipt of IR ESA be allowed to transfer their defined benefit pension out of the original occupied workplace pension scheme to another scheme.? To keep for state retirement age.(3 years off) With an annuity plan for later life.
Thank you for your help.
Joy
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4 years 10 months ago #232967 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic IR ESA & Occupational Pension
Joy
This is a question that you need a qualified Finacial Advisor to look at that no one on this forum can answer.
Gordon
This is a question that you need a qualified Finacial Advisor to look at that no one on this forum can answer.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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