Can we still put away for a pension?

TaBunny

When I say we I mean people on IS or IB and DLA long term. I keep hearing a lot of my friends who are now in their mid 40's saying they must get a private pension plan. What I want to know is can people on benefits put money away in pension plans and if so which ones and where from as I don't understand them at all. I don't know if I will still get DLA when I'm old and therefore don't know if I'll still get my car from motability so want to put something away now for a pension?

altocumulus

The way I see it, the money is yours once they've given it to you - so feel free to use as you best see fit .....

somebody_else

altocumulus wrote: »

The way I see it, the money is yours once they've given it to you - so feel free to use as you best see fit .....

Afraid it's not quite as simple as that, alto.

I was paying into a personal pension many years ago and for quite a long time after I'd lost my job because of ill health. Around 2 years after I'd gone sick, the pension company involved became aware that I was no longer employed and insisted that I take back those 2 years of contributions. At that time, no-one who was not in some kind of paid employment was allowed to pay into a personal pension. [There used to be a limit to how much one could put into a pension each year - can't remember the figures now, but it was a percentage of one's earnings.]

TaBunny, I really think you ought to contact HMRC in the first instance - they'll be the ones who can give you a definitive answer on this.

Gemmzie

TaBunny, unless you're planning to save a lot, you're probably better off filling an ISA in the first instance.

daska

They have changed the rules e.g. you can now put your entire earnings into a pension. You'd have to check your personal circumstances with an adviser. Any of the pension firms will be more than happy to let you know how much money you can give them!

If you're on IS/IB how can you afford to pay into a pension?

The one good thing about pensions, cos the limitations are appalling, is that the fund is protected - unlike savings or equity, which you would have to use before you qualified for benefits.

somebody_else

daska wrote: »

If you're on IS/IB how can you afford to pay into a pension?

By doing without other things.

black_paw

best money under the floor boards and safe LOL ... but i understand what you mean tabunny , think mine have been frozen

[Deleted User]

daska wrote: »

They have changed the rules e.g. you can now put your entire earnings into a pension. You'd have to check your personal circumstances with an adviser. Any of the pension firms will be more than happy to let you know how much money you can give them!

If you're on IS/IB how can you afford to pay into a pension?

The one good thing about pensions, cos the limitations are appalling, is that the fund is protected - unlike savings or equity, which you would have to use before you qualified for benefits.

Sorry but thats incorrect,savings upto £50k are protected,and you can have upto 16k in savings before you lose all benefits,between 6k and 16k you lose £1 for every £250 of savings,under£6k you get full benefits,equity by which i assume you mean property does not affect benefits if its your home.
And I/S and DLA are NOT means tested anyway

[Deleted User]

TaBunny wrote: »

When I say we I mean people on IS or IB and DLA long term. I keep hearing a lot of my friends who are now in their mid 40's saying they must get a private pension plan. What I want to know is can people on benefits put money away in pension plans and if so which ones and where from as I don't understand them at all. I don't know if I will still get DLA when I'm old and therefore don't know if I'll still get my car from motability so want to put something away now for a pension?

If you are getting DLA when you reach 65 then you will continue to get it for as long as you still meet the qualifying conditions

TaBunny

daska wrote: »

If you're on IS/IB how can you afford to pay into a pension?

Well I was hoping to put away about £50 a month into a pension as I can afford to spare that, I don't drink, smoke or go out socialising hardly ever so that's how I can afford it

TaBunny

woodbine wrote: »

If you are getting DLA when you reach 65 then you will continue to get it for as long as you still meet the qualifying conditions

Thank you that is very helpful, thanks to everyone for their imput