Not sure where to post but its related to benefits!
Options
Comments
-
I'm with HL for my sipp pension, and I've found they are great and charges are quite reasonable for small pensions. Plenty of other providers though.
You can choose what assets you have, or leave in cash (no interest though). However you mentioned ISA's so you'd have the same investment decisions with those, it's just the tax 'wrapper' that is different.
Once your capital has dropped below £16,000 yes you can go back on benefits. The pension value won't be included in this capital total.
Once you've gone below £6000 capital (say to £3000 as an example), and assuming you're also then over 55 years old, you can take out lump sums of your pension to increase your capital, say get out £3000 to bring your capital back up to £6000. Spend your capital down over a period, then take out another small lump sum.
You don't have to wait until you get your state pension to get your money back out, if you want to spend it sooner. We're not talking about sums of money that would be life changing in retirement were you to keep it until then.
I second another posters suggestion to keep your ESA claim going. You will receive NI credits which will go towards your state pension. It's quite normal for someone who has too much capital to actually receive any ESA cash to stay on for the credits.0 -
Alice_Holt wrote: »Re ESA. You should be able to continue your claim as a "credits only" claim to receive Class 1 NI credits if you are unfit for work, but this is subject to the same assessment regime as ESA.
So when you contact the DWP to tell them about the money don't ask to close your claim, rather ask to continue a "credits only" claim.
Sorry my pension post is rather technical.
Pension Wise & / or the Pension Advisory Service may be clearer.
The recent Pension freedoms mean that you can take money out directly from age 55, rather than getting a very small annuity (monthly private pension) from it once you reached retirement age. It's now much more flexible.
Yes unfortunately I've had some cognitive decline from depression and a progressive neuro condition. I can't seem to take stuff in like I used to!
I have been looking at those sites. It seems the basic state pension would be £155.65 if you had full credits? ..so staying on credits only for ESA would give me full credits for when I reached retirement age?
It mentions the age changing from 65 to 68 and another site mentioned age 70 before a person can retire! Would that mean then that PIP and ESA would continue until that age if you were unable to work until 70?
I've no idea if I'll still be here at 70! I guess nobody does, but I statistically have less chance considering I've already had a progressive condition over 10 years and been in a wheelchair since I was 35 (I'll be 48 this year). I'm just hoping for at least 10 years to see out the life of my young collie (assuming he also lived to 15 as my other dog did)
If I took out a private pension then didn't live to draw it what happens to it if you have no children or partner for them to give it to? Would I be better just taking the state pension if I make it to that age? and what are pension credits? are they an additional amount of money on top of the state pension?
Sorry for all the questions, my dad used to do all this side of stuff so I'm finding all the choices baffling and struggling to take it all in!
What are these Disabled Trust Funds? could I put it in there incase I needed to move into sheltered care at any point? or to pay for a live in helper so I could stay in my own home?0 -
Hi Leighan,
Yes the NI credits you get, if you continue to claim ESA, should bring your State Pension (SP) entitlement to the full £155. The SP will be paid alongside any other pensions you have (e.g occupational pensions, private pensions)
Your Pension Age would be 67.
You can check here: https://www.gov.uk/state-pension-age
If you continue to meet the conditions for ESA, then this would continue until your SP age, at this point ESA would stop and you can get your (more generous) SP.
PIP is paid because of the additional costs of your disability. This can continue to be paid alongside your SP as well as ESA. So, if you continue to be eligible it will continue to be paid.
Pension Credits top your pension income up to the minimum amount the government says you need to live on in retirement which is £155. Because the SP has been brought up to that amount, fewer people will need to claim PC in the future.
Re private pensions & SIpp's.
Willowcat suggested these as a possibility because:
1) Money in pension funds are not included in your capital total by the DWP for ESA purposes (whereas savings accounts are).
2) You can take money out of a pension fund / SIPP from the age of 55. Willowcat's 2nd post explains this in more detail.
3) You get a income tax uplift to the amount you contribute to a pension (i.e. £2,880 to £3,600) even if you are not a taxpayer.
However, pensions are quite complicated and you need to be sure what you are doing is right for your circumstances. If you are worried by these pension / SIPP complications and not sure how it might work to your advantage, then it's a complication you may sensibly decide you do not wish to get into.
I'm afraid I don't know enough about Disabled Trust Funds to comment sensibly.Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards