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TOPIC: Pension Pot

Pension Pot 2 weeks 1 day ago #232133

A while ago I asked a question about my very small government pension and whether it would effect my income based ESA if I claimed it early. I live alone and struggle to manage constantly. I was advised to take the lump sum as this would not be touched.

I have since discovered that I cannot take just the lump sum. It's all or nothing with government pensions. It's bad enough being a woman born in the 50s without any more blows. I'm 62 and didn't find out until 2014 that I won't get my state pension until I'm 66. If I claim the pension and lump sum now, does anyone know what the disregard would be. If it's all going to be swallowed by the government I don't think I'll bother. Even though I desperately need some spare cash.

Also, would this trigger a change in circumstance which in turn would mean claiming UC?

Since my reassessment in May, I've been diagnosed with Rheumatoid Arthritis to add to all my other problems. I feel like I'm fighting a losing battle and any kind of peace of mind is always out of reach.

Anyone got any good news?

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Pension Pot 2 weeks 1 day ago #232154

tazman

If you are receiving Income Related ESA then there is no disregard for any pension income, i would expect it to be deducted £ for £ as to the lump sum, see

Asset and savings rule for ESA(IR)

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

Pension Pot 2 weeks 1 day ago #232160

I am interested in this issue and still trying to find out if a pension HAS to be taken at the age it becomes payable - so if it can be paid say from 60 (with no deductions) then can it be deferred to pension credit age - or will it be counted by dwp as 'notional income' for the calculation of ESA
I think it might be the latter
but I cannot get a defined answer to this

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Pension Pot 2 weeks 1 day ago #232177

Walker

Whether you need to take the pension and how you would do this are defined by its terms and conditions.

For the purposes of benefits, you are not required to take your pension at any particular time but once you reach Pension Credit Age you will be considered to have Notional Income from any pension that you have not taken.

PCA is State Retirement Age for a woman and for a man the SRA for a woman born on the same date.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

Pension Pot 2 weeks 1 day ago #232191

Small pensions can be commuted completely to lump sums on the grounds of "triviality". I had one which was due to pay about £1000 per annum but could be commuted to a lump sum of £19000. You have to ask your pension provider about it as some of them don't seem to know and it isn't widely publicised. It is worth asking though.

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Pension Pot 2 weeks 1 day ago #232193

To all

Just to be clear, no one on the site is authorised to give financial advice.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems
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