pensions and savings rules

mel12

Hi,
I'm on a low income but currently about £1 a week over being able to get any benefits. I'm thinking about needing to sort out a pension at some point, but concerned if my job goes or my hours get cut (I'm part time) and I need to claim - would the money in the pension count as savings for benefit purposes and how do they work this out?
I'm very wary of having money I can't access until I'm 65 counted as savings then not being able to get any support if I need it.
thanks

zagfles

No, money in your pension won't count as capital for the purposes of benefits. But when you start drawing the pension, that income will count against benefits.

Contributions to a pension scheme can increase entitlement to some benefits (I think 50% of the contribution usually), and will lower the income you are assessed on for tax credits purposes.

mel12

thanks