Wanting to save, but I'm not allowed too!

coowee

I know someone who is on Income Support and DLA .
(They have an illness which makes it impossible to work.)

Am I correct in saying that they can only have £6000 in the bank or is there someway around this ?
This problem is causing concern as they are worrying what the outcome will be when they are of pension age?

lrr_2

i think thats right. i would just save the rest in the house

RayWolfe

I don't understand the question. What is the connection between getting income support now and a pension at retirement?
.... and ignore Irr who is not only advocating that fraud is the answer but that cash should be kept in an unsafe (theft) and wasteful (not earning interest) way

coowee

RayWolfe
I was only trying to make it clear to everyone that this person isn't one of those who rely on the government to get - shall I say freebies, instead of working.

They are wanting to put more money to one-side to pay for the much needed help which will be required when they get to pensionable age. (helping with housework and cooking etc.)

We all know that the council will help someway in getting by?
But I have seen it first hand where someone has popped into the house and just leaves a sandwich and a flask of coffee.

This person wants to pay for help themselves, in making a life that doesn't simply consist of just existing.

So the question is -
Am I right in saying that they can have only £6000 in saving, or is there another avenue they can go down. ( without committing fraud)

YorkshireBoy

coowee,

With all due respect to the regulars on this board, your question might be better asked on the benefits board here...

http://forums.moneysavingexpert.com/forumdisplay.html?f=139

halight

Hi,
As far as Income Support goes i think £6000 is the limit. But savings do not afect the DLA at all.

zzzLazyDaisy

£6000 is the limit for savings if your friend is on IS.

If they are nearing retirement, they might be better looking at the household goods (washer, vaccuum cleaner, cooker, bed etc) to see if any of those are likely to need replacing in the near future. They could use the surplus money to get the house into a good state so that when they do retire, they don't have to dip into their savings for large replacement expenditure.

john_s_2

I think this question is better placed on the benefits board but for what it's worth...

The savings limit for Income Support is £16,000, according to this page:

http://www.jobcentreplus.gov.uk/jcp/Partners/allowancesandbenefits/Dev_010100.xml.html

But for every £250 you have over £6000, £1 is deducted from the amount you will be awarded. This table shows how much:

http://www.jobcentreplus.gov.uk/jcp/Partners/allowancesandbenefits/Dev_010132.xml.html

I *think* I'm right in saying that any savings held in a pension scheme are ignored when calculating how much savings are held. But this would have to be a proper pension scheme and not just some regular savings that are earmarked for being used in retirement.

coowee

Thanks for all of your replies
Johns s
I will pass all your info on to them as the pension scheme looks interesting !
Mind you - I think I have read somewhere that anyone on I.S. isn't able to have a private pension.

Its hard to try and sort something out for a person who isn't one of the family, as it means delving into their private affairs , so it will be up to them now to sort thing out?
Thanks again
Coowee

john_s_2

coowee wrote: »

Thanks for all of your replies

Mind you - I think I have read somewhere that anyone on I.S. isn't able to have a private pension.

Its hard to try and sort something out for a person who isn't one of the family, as it means delving into their private affairs , so it will be up to them now to sort thing out?

Do you mean that a pension company wouldn't take them on as a customer? Or that paying into (or receiving) a private pension excludes you from IS?

I don't know what criteria pension companies use when taking on new customers. I believe stakeholder pensions are supposed to be the least complicated schemes? And are designed for people who can only make small contributions? I don't see why a company would exclude new customers if they're on IS. Although I daresay they'd have to be very careful given that they would be selling something to someone with limited means. I think stakeholders allow the customer to vary, and even stop, the amounts paid in.

Paying into a private pension wouldn't exclude someone from IS, nor would receiving one (although the income would be taken off any award, and obviously if the amount is more then there won't be any entitlement to IS - or more likely, Pension Credit, which is income support for over-60s).

Citizens Advice Bureau would be a good place to start for free advice.

coowee

This person has asked two companies to open a pension , and was told that because they are not holding down a job it wasn't possible - there again this was before DLA was granted for life.
Maybe under these new circumstances it might be possible?

I will definitely ask them to go to the A.B. though to see where he legally stands