We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Can I cash in endowment while receiving state benefits?
martinsimpson
Posts: 15 Forumite
Hi All. Like most peoples endowments mine has performed badly. It's a 25 year policy with 5 years left to run and I expect the shortfall to be around £18,000. It would be better now savings rates are higher to surrender the policy and put the £25,000 surrender value in a high interest account. But if I do this will I violate the DWP's £6,000 savings rule and have my benefit stopped? Obviously this endowment money needs to go towards paying off my mortgage as it was intended to do so I would not be happy to use it to live off. If it is not counted as income by the DWP will any interest earned on the £25,000 be subject to benefits rules on income?
0
Comments
-
Have you asked the DWP what the position is if you use the surrender value to reduce the mortgage?
That is usually the best way to deploy an endowment.Trying to keep it simple...
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards