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ESA, Permitted Supported Work, Stakeholder Pension
- 4n9el4
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5 years 1 month ago #228728 by 4n9el4
ESA, Permitted Supported Work, Stakeholder Pension was created by 4n9el4
My 30 year old son has autism & OCD. His part-time employment is within Permitted Supported Work & he claims Employment & Support Allowance (means tested); he is in the Support Group. I was advised that in order to ensure his earnings kept him below the limit before benefits were adversely affected, it would be worth considering him taking out a personal pension. I was told that in the eyes of the powers that be, diverting a small sum into a pension would mean that his weekly pay was then considered lowered by that amount, thereby safeguarding his entitlement to benefits. I am concerned by what I have read in information from a pension provider, “You should be aware that joining a pension scheme may not be suitable for you, particularly if small amounts of savings affect your entitlement to any means tested State benefits.” I believe there is an upper limit of savings of £6,000 before benefits are affected. I am feeling totally confused by the whole situation … can anyone shed any light on this for me or offer advice?
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- Gordon
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5 years 1 month ago #228743 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA, Permitted Supported Work, Stakeholder Pension
4n9el4
It may depend n the scheme in which case you are going to have to get face to face advice but pension pots are not normally classed as savings until the claimant reaches what is called Pension Credit Age, normally State Retirement Age.
The key issue is whether the claimant can access the "pot" as and when they wish, this would not be the case for what I will call a standard pension.
Also, Permitted Work specifically refers to pension deductions and makes no reference to an associated impact because of savings.
Gordon
It may depend n the scheme in which case you are going to have to get face to face advice but pension pots are not normally classed as savings until the claimant reaches what is called Pension Credit Age, normally State Retirement Age.
The key issue is whether the claimant can access the "pot" as and when they wish, this would not be the case for what I will call a standard pension.
Also, Permitted Work specifically refers to pension deductions and makes no reference to an associated impact because of savings.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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