Pension Advice please

spentoomuch

Hi,

I would be grateful if anyone knows the answer to this question as I have been reading everything I can find. But am maybe not looking in the right places.

If I go BR would I lose my pension that I am in receipt of now? (paid monthly) I am still of working age and do work, it is an occupational pension.

We are not quite at the stage of BR yet and are still trying to sort our mess out (which I know is all our own fault)

My OH will lose his job if he goes BR.

I am trying to work out what might be the best option should it come to it.

Thank You

dojoman

What do you mean by lose it?

spentoomuch

Hi,

Will they take it to repay debts ? It is paid monthly for the rest of my life.
Thank You

dojoman

I have an employers pension also and it is included in my income when you do an SOA, but they will not take your pension of you per se, but if you have a surplus income of £20 or more on your SOA then this will be taken via an IPA for 36 months. Have you spoken to one of the debt charities about BR?

spentoomuch

No not yet we are trying to keep going at the moment.

I had read somewhere that if you go BR you cannot keep your pension, as it will be taken towards your debts. My pension is more than I earn for 35 hrs .

dojoman

spentoomuch wrote: »

No not yet we are trying to keep going at the moment.

I had read somewhere that if you go BR you cannot keep your pension, as it will be taken towards your debts. My pension is more than I earn for 35 hrs .

That is a load of rubbish, your pension will not be taken off you but like I said it will count towards your income.

BB&B

As Dojoman has said it is included in your income.

So each month you get your wage and pension* (and any other incomes you may have) these are ALL added together to give you your monthly income

You then deduct your allowable monthly expenses

what is left is called the surplus

It is the surplus that can be taken in the form of what is called an Income Payment Agreement/Order

Your pension is safe, that wont be taken, but what is PAID to you each month will be used to work out your income

(* I know most pensions are paid quarterly, but it gives a monthly amount and that is what is used in the calculations)

spentoomuch

So, If I got an Iva it would count towards my income. If I was made bankrupt I would still be able to keep it ( it is paid monthly) .

Am I grasping it ?

BB&B

Partly.

Currently you earn wages
Currently you get your pension
You may get money from other places as well

Add these all together and you end up with what is called your income

For example

Monthly wage = £400
Monthly pension = £500
Other income = £nil

Total monthly income = £900

In any debt remedy that will not change.

Then you deduct your allowable expenses and for arguments sake lets say they add up to £800.

So now you take your expenses from your income, thi swill leave £100 surplus.

It is the £100 SURPLUS that can be taken, how much of it that is taken will depend on your debt remedy.

In any debt remedy you will pay for a period of time (if there is sufficient surplus).

After y9ou have finished paying ALL surplus is yours again.

The pension is never taken from you, but the surplus it contributes to is.

Does that make it a bit clearer

Tim

spentoomuch

Thank You Tim, I think I have it. (I know it sounds daft wanting to hang to something like a pension when you are in such a mess but I worked very hard for 20 years for it and am ashamed that it has come to this)

Could I be cheeky and ask you something else, if you have time......
What is an asset,
A car that you are paying for still ?
A Dog ? ( please don't laugh !)
Furniture ?
TV's etc ?
Jewelery like engagement rings and wedding rings ?

I am wondering what might be taken to help towards our debts.

dojoman

Please contact one of the charities below, they will offer free and impartial advice.

https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/



Below is a link you may found helpful about going BR?

https://forums.moneysavingexpert.com/discussion/1056083

Please have look at the links above, it is much beter talking to someone and it is free.