How much savings before Incapacity Benefit affected

mardigrasgirl

Hi

I've decided to take my pension early, but need to know how much savings (lump sum) can I have before my Incapacity Benefit is affected.

I have a partner, so would my lump sum be seen as "joint savings" once I banked it?

I've not made a final decision as to whether to take a higher monthly pension with a lower lump sum or to take a lower monthly pension with a higher lump sum.

Obvsiously I do not want any of my pension to go to the government as I worked very hard over the past 20 years to build it up.

Thanks for reading.

Indie_Kid

Savings don't affect IB. However, a pension does.

mardigrasgirl

Thank you very much for that. I've made my mind up, put my lump sum into savings and have a lower pension.

Chorlie

IB is changing to ESA and your saving my effect it.

See my reply on your other thread

I took the highest lump sum, I now think that was a mistake and I should of taken the biggest monthly amount.

It really depends on the amount involved.



From Diect Gov Web Site:


Quote

"Entitlement conditions

There are two types of Employment and Support Allowance:

contribution-based
income-related


Contribution-based Employment and Support Allowance:

You may be entitled to claim contribution-based Employment and Support Allowance if you have paid enough National Insurance contributions.


Income-based Employment and Support Allowance:

You may be entitled to claim income-based Employment and Support Allowance if you do not have enough money coming in, or you have not paid enough National Insurance contributions, and you satisfy the entitlement conditions.

This means that you have savings of less than £16,000 and, if you have a partner or civil partner, they work for less than 24 hours a week on average."

Jock221

Incapacity is not means tested -and your pension will only effect you from a tax point. You will pay tax on your pension as the IB and pension would probably take you over the threshold but having a pension will not prevent you getting IB

dmg24

Jock221 wrote: »

Incapacity is not means tested -and your pension will only effect you from a tax point. You will pay tax on your pension as the IB and pension would probably take you over the threshold but having a pension will not prevent you getting IB

Wrong - and why do you keep bumping old threads?

Jock221

I think you will find I am not wrong IB is not means tested and I am on receipt of a work pension. Been there got the t-shirt unless of course my tax office, pension provider and benefits office are all not obviously as experienced as you !

dmg24

Jock221 wrote: »

I think you will find I am not wrong IB is not means tested and I am on receipt of a work pension. Been there got the t-shirt unless of course my tax office, pension provider and benefits office are all not obviously as experienced as you !

So you are right and the govt is wrong? :rotfl:

Jock221

Feel free to check it out. A private work pension does not effect incapacity benefit but a state related old age pension does as the individual is asking about a work pension I am therefore right and I will bump old threads if I feel like it and if you have that much of a problem why are you responding. There is one born every minute!!!know it all

dmg24

Jock221 wrote: »

Feel free to check it out. A private work pension does not effect incapacity benefit but a state related old age pension does as the individual is asking about a work pension I am therefore right and I will bump old threads if I feel like it and if you have that much of a problem why are you responding. There is one born every minute!!!know it all

I have given you a link which confirms the facts, or you could check the DMG for yourself. Keep up Andy! :rotfl:

Jock221

Where's the link and who is this Andy you keeping talking about. Obviously my tax and benefit providers are both wrong and you are right I will have to contact them on Tuesday and give them the benefit of your considerable experience.