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TOPIC: Small Pension.

Small Pension. 2 months 5 days ago #227700

I turn 60 in a few months and have had a letter to say I can apply for my (NHS) pension. As I'd only paid in for a few years it is very small, roughly £30 a week.

I'm apprehensive to phone the DWP and ask for info. as I fear even just inquiring might trigger a re-assessment and the dreaded path to UC.

I'm on ESA IR WRAG. I accept that it is likely that the amount is deducted, penny for penny but I will need to either tell them or not claim my pension.

Could I ask what is the best way to proceed?

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Small Pension. 2 months 5 days ago #227714

Susan

Unless you are required by the terms of the pension to take payments now then you should be able to leave it until you reach what is called Pension Credit Age, this is your State Retirement Age if you are a woman and the SRA for a woman born on the same day as you if you are a man.

If you do take the pension then it will be deducted from your ESA £ for £.

Gordon
The following user(s) said Thank You: SusanH

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Small Pension. 2 weeks 5 days ago #229792

Thank you for the above advise.

It would seem I either start taking my pension this Year or, if I wait till 66, they back date it.

I would assume then, I would have to give that amount to the DWP? As it would cover the overlap with my ESA.

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Small Pension. 2 weeks 5 days ago #229814

Susan

Forgive me but I am confused, if you don't take the pension until you are 66 why would they backdate it?

Gordon

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Small Pension. 2 weeks 5 days ago #229830

Sorry I confused you. I don't know, The woman I spoke to just said it and I didn't ask why.

It is possible I misunderstood, I will ask again.

I know the monthly pension would be deducted from the ESA but what about the tax free lump sum? It will be £4,900 ish and I have no savings. I want to put £4,000 away towards my funeral?

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Small Pension. 2 weeks 5 days ago #229839

Susan

The lump sum will be treated a capital/savings so as long as your total savings and assets do not exceed £6000 then it won't affect your ESA.

I want to make it clear that I am not offering financial advice but is there any value in your taking a monthly payment given that it will be deducted from your ESA £ for £?

Gordon

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