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Private Pension At 60, & It's affects on UC, New Style ESA, and PIP
- glennamy
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6 hours 15 minutes ago #311084 by glennamy
Private Pension At 60, & It's affects on UC, New Style ESA, and PIP was created by glennamy
Hi, Forum advisors,
My brain hurts, and I am quite stressed about a letter I have received.
Firstly, I want to make clear I am not asking for financial advice, but I have added financial details to help someone knowledgeable understand my position.
I will be 60 next May, and my private pension company has written to me about my entitlements and options:
My Total Scheme Pension at Retirement is £10,045.54 per year, divided by 52 weeks is £193.17 per week, or £837 per month.. The second option is a 25% lump sum of around £49,200 & £738.00 per year, divided by 52 weeks, equals £142 per week. (I am not opting for the second 25% lump sum and reduced weekly payment).
My current Benefits:
I am receiving UC LCWRA of £451.10 per month; this figure is minus deductions of my New Style ESA payments (previously ESA CB) of £609.05 per month. Combined £1060.15 per month.
I also receive PIP High Rate, both elements, but I think this is unaffected by tax/benefits.
My questions:
Are you required, by law, to take your private pension at 60, or can you wait until state pension age, currently 67 for me, 2033? I am worried that I will be in a worse position because of my private pension.
If I have to take my private pension, will I lose all my monthly UC payments of £451.10, as my private pension will be £837 per month? Will I also lose the extra things like Council Tax reduction, free dental & prescriptions? I currently pay zero Council Tax! My taxable income will still be low, so will I be entitled to the extra help on that basis?
Will I lose all my New Style ESA? I read on a gov DWP link that you lose half of everything over the initial £85 per week. So, am I right in thinking that my weekly Private pension of £193.17, minus the private pension allowance of £85, equals £107.17, half of which is £53.58 per week, this will be deducted from my NS ESA, of £140.55 per week, and I will still receive £86.97 NS ESA every week?
Regarding my PIP award, am I right in thinking it is now linked to UC WCA? What happens if they stop my UC? Will this mess up my PIP award?
I visited CA to help with the private pension letter, as I needed help understanding the contents, but they said it is complex regarding benefits as we talked further. They advised me to call Pension Wise
I hope this is clear, and I apologise if it is not, as I struggle badly with brain fog.
This has taken many hours of working out, and I am so stressed and a nervous wreck!
Thank you,
Glenn
My brain hurts, and I am quite stressed about a letter I have received.
Firstly, I want to make clear I am not asking for financial advice, but I have added financial details to help someone knowledgeable understand my position.
I will be 60 next May, and my private pension company has written to me about my entitlements and options:
My Total Scheme Pension at Retirement is £10,045.54 per year, divided by 52 weeks is £193.17 per week, or £837 per month.. The second option is a 25% lump sum of around £49,200 & £738.00 per year, divided by 52 weeks, equals £142 per week. (I am not opting for the second 25% lump sum and reduced weekly payment).
My current Benefits:
I am receiving UC LCWRA of £451.10 per month; this figure is minus deductions of my New Style ESA payments (previously ESA CB) of £609.05 per month. Combined £1060.15 per month.
I also receive PIP High Rate, both elements, but I think this is unaffected by tax/benefits.
My questions:
Are you required, by law, to take your private pension at 60, or can you wait until state pension age, currently 67 for me, 2033? I am worried that I will be in a worse position because of my private pension.
If I have to take my private pension, will I lose all my monthly UC payments of £451.10, as my private pension will be £837 per month? Will I also lose the extra things like Council Tax reduction, free dental & prescriptions? I currently pay zero Council Tax! My taxable income will still be low, so will I be entitled to the extra help on that basis?
Will I lose all my New Style ESA? I read on a gov DWP link that you lose half of everything over the initial £85 per week. So, am I right in thinking that my weekly Private pension of £193.17, minus the private pension allowance of £85, equals £107.17, half of which is £53.58 per week, this will be deducted from my NS ESA, of £140.55 per week, and I will still receive £86.97 NS ESA every week?
Regarding my PIP award, am I right in thinking it is now linked to UC WCA? What happens if they stop my UC? Will this mess up my PIP award?
I visited CA to help with the private pension letter, as I needed help understanding the contents, but they said it is complex regarding benefits as we talked further. They advised me to call Pension Wise
I hope this is clear, and I apologise if it is not, as I struggle badly with brain fog.
This has taken many hours of working out, and I am so stressed and a nervous wreck!
Thank you,
Glenn
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- latetrain
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5 hours 44 minutes ago #311086 by latetrain
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by latetrain on topic Private Pension At 60, & It's affects on UC, New Style ESA, and PIP
Hi glennamy
You need to look at your pension options about deferring it. As you rightly pointed out, we cannot give you any financial advice.
You are correct with what you have posted.
As you correctly stated, whatever you received from your pension is deducted £ for £ from your UC and as you also pointed out your NS ESA would also be affected.
Once you lose your UC, then you will need to pay your health costs such as prescriptions costs, dentist etc.
Gary
You need to look at your pension options about deferring it. As you rightly pointed out, we cannot give you any financial advice.
You are correct with what you have posted.
As you correctly stated, whatever you received from your pension is deducted £ for £ from your UC and as you also pointed out your NS ESA would also be affected.
Once you lose your UC, then you will need to pay your health costs such as prescriptions costs, dentist etc.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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