Incapacity Benefit and State Pension 28 January 2009 at 6:59PM edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning 20 replies 14.4K views

Allen.H

I have been in receipt of IB since 1991. and understood that it was payable until the age of 70 years. I have just submitted my application for State Pension and have been told by the Pension board that IB will be stopped when I receive my State Pension on reaching 65 years. Can this be right. I will be £30. 00 worse off

EdInvestor

I believe IB stops at state pension age but won't you be eligible for pension credit?

Katykat

I THINK- that you can choose which one to take, but you cant have both. Pension credit is means tested, but IB or state pension isn't. Obviously, you would choose whichever puts most money in your pocket

EdInvestor

You cannot get Incapacity Benefit if you receive a state pension. However, when you reach the state pension age and are claiming Incapacity Benefit, you may choose to continue receiving Incapacity Benefit for a few further years if that is a better option. You may need to take advice on which is the best option.

http://www.patient.co.uk/showdoc/23069018/

Looks like a visit to Age Concern/the CAB is indicated.

Allen.H

Thanks EdInvestor and KatyKat excellent Advice. I am not eligible for Pension Credit as I have a Firms pension. I will look into the fact that I may be able to hang onto the IB for a bit longer. It's a pity that the pensions Board did not inform me of this fact when I spoke on the telephone to them when applying for the State Pension

jackandjohn

I too have been on invalidity benefit since 1994. I have been told by pensions that this will stop on my 65th birthday. Has anyone found the way to keep the invalidity benefit until 70. I was told by the parkinsons society this was possible but they no longer seem to have that information. Dept of pensions also seem unable to help.Thanks

SnowMan

jackandjohn wrote: »

I too have been on invalidity benefit since 1994. I have been told by pensions that this will stop on my 65th birthday. Has anyone found the way to keep the invalidity benefit until 70. I was told by the parkinsons society this was possible but they no longer seem to have that information. Dept of pensions also seem unable to help.Thanks

Long term incapacity benefit (IB) ceases at State Pension Age so age 65 for a male.

Short term IB can sometimes continue until age 70 (for a male) provided the 364 days of IB at the short term rate has not run out by SPA and the period of incapacity for work began before SPA and subject to sufficient NI to qualify you for a category A state pension (or category B based on deceased spouse). However as you are on long term IB this doesn't apply to you.

Edit: Worth saying also that Incapacity Benefit replaced invalidity benefit on 13 April 1995. Some of those on invalidity benefit prior to 13 April 1995 continue to receive a a higher transitional rate of long term IB. I'm not sure of the detail. But I am assuming that this stops at SPA in the same way that the normal long term IB stops at SPA.

millie

My husband lost his invalidity benefit at 65 three years ago, and the £30 a week you are worse off is actualy more because the pension is taxed where the old invalidity benefit was tax free.

margaretclare

millie wrote: »

My husband lost his invalidity benefit at 65 three years ago, and the £30 a week you are worse off is actually more because the pension is taxed where the old invalidity benefit was tax free.

....and at 65 the age-related personal allowance kicks in so that you can have more income before paying tax. For the current tax year the personal allowance is £9490 - that's each of you, not just your husband, assuming that both of you are 65+.

It's incapacity benefit - invalidity benefit had a name-change some time ago, as SnowMan said.

bendix

why does this thread make me feel very very depressed?

Pobby

bendix wrote: »

why does this thread make me feel very very depressed?

You tell me.