Private pension due May 2016 need advice.

Hi. Hope I am posting in the correct place. Sorry if not.

I receive both ESA and PIP and can have possible access to my small NHS pension in May 2016 when I reach 55yrs. I also am receiving SMI which is an absolute blessing and has saved me from losing my home. I live alone without a partner.

I hope to draw a cash lump sum from my pension so that I have a buffer of money should my benefits be stopped or similar crisis. I have a varied set of medical conditions that would prevent me working again. Ive worked all my life until 2014. Have two very small separate pensions from two varied careers, I can obtain the NHS at 55yrs the other at 65yrs.

1. I am aware that I am allowed £16000 capital before it would effect my benefits? If a lump sum takes me over this, can I spend money on a car or health without being penalized? I currently have almost nil savings.

2. Is it correct I can receive an extra weekly amount of £85 per week from a private pension before being penalized?

3. Any capital/equity in my (heavily mortgaged) home is that counted against my benefits?

4. I wrote to the DWP for advice months ago without response, who are the best people to speak to re all this? as its all very complicated and personal to my circumstances.

Thanks in advance

Hi

As you say this is personal to your circumstances and that makes it difficult for us to give specific advice.
You could try a financial advisor who may do it for free. You could try Googling financial advice in your area and contact a couple to see what they say before commiting to paying for advice.
Otherwise you could try

www.turn2us.org.uk

Who offer free initial advice and may be able to introduce you to someone.

I'm sorry we can't be more help.

Neal (hopefully the mods will post this one)

Advice from a professional and/or your pension body is advised.

You are in the same position as I am. I have decided to take my 3 public sector pensions early (53) currently getting ready to apply having contacted all of them. I have been advised that I can access them on the grounds of ill health and will not lose anything substantial by doing so from one and nothing from 2. It would be treated as reaching retirement age. As for PIP that should not be affected. Esa will depending on type of ESA, IB or CB. I am on CB ESA and given all the trauma and uncertainty around applying on a yearly basis or whenever they want, ( if it's still exists in the next few years), I think I prefer my pensions.

Certainly for your NHS one, check early retirement on grounds of ill health before applying for early at 55.

Good luck

Here are the details

www.nhsbsa.nhs.uk/Documents/Pensions/Ill...rement_Factsheet.pdf

Thank you for the very useful replies, bit worrying.

Elisa: I will do same as you and contact my two pensions re ill health rather than early retirement. Not sure if they both would cover my mortgage if I lose the SMI, but from the replies I may lose it anyway. Most certainly on my list to find that out now. I have taken in lodgers in the past to cover the mortgage payments before my health became worse. Due to divorce I lost half of one pension so unlike you I probably need the ESA as my pensions wont be large enough.

Gordon: £6000 ok, noted thanks. If my SMI is removed I reckon it would be a huge mistake to redeem my small pensions early.

foss27: disagree! the specific advice received here has been very useful I will try the link too thank you. And also Age Concern.