pensioner savings allowance

scorpiana

Hi
Can anyone help me? A friend of mine has been awarded the higher rate incapaticy benefit, he got his work pension and is receiving his state pension too. He is 61.
Does anyone know how much he is allowed to have in savings before it has any effect on his benefit and pensions?

Thanks
Sam

seven-day-weekend

Savings will affect neither his Works Pension nor his Incapacity Benefit; however if his Pension is more than £85 a week, his IB will be reduced by 50p for every £1 over that amount.

scorpiana

seven-day-weekend wrote: »

Savings will affect neither his Works Pension nor his Incapacity Benefit; however if his Pension is more than £85 a week, his IB will be reduced by 50p for every £1 over that amount.

So if he has say £15,000 in savings do you think it won't effect his Incapacity or pension?

margaretclare

His savings only come into the equation if he wants to claim means-tested benefits. Disability benefits like DLA and also, state retirement pension which he's already earned, don't come into this category.

scorpiana

margaretclare wrote: »

His savings only come into the equation if he wants to claim means-tested benefits. Disability benefits like DLA and also, state retirement pension which he's already earned, don't come into this category.

Thank you, he is really worried about it and has taken to hiding money in the house and garden! I am trying to persuade him to get him to save it in and ISA etc.

seven-day-weekend

scorpiana wrote: »

So if he has say £15,000 in savings do you think it won't effect his Incapacity or pension?

Neither his Pension nor his IB are means-tested on savings, so he could have as much savings as Richard Branson and it would still not affect it. He has no need to worry about that.

If he wants proof in writing show him this from the Disability Alliance Website:
http://www.disabilityalliance.org/f24.htm

Your IB may be affected by the following:

• It will be reduced if you have have an occupational pension of over £85 per week. There are some exceptions to this rule.
• If you were getting statutory sick pay before claiming IB you will start at the short term higher rate.
• If you are over pension age you cannot get long term rate IB.
• If you are terminally ill you will move onto the long term rate after 28 weeks.
• Short term higher rate and long term rate IB are taxable and may affect your other income.

The amount of savings you have does not affect your IB.

Mojisola

How is he getting the State Pension at his age?

anmarj

scorpiana wrote: »

Hi
Can anyone help me? A friend of mine has been awarded the higher rate incapaticy benefit, he got his work pension and is receiving his state pension too. He is 61.
Does anyone know how much he is allowed to have in savings before it has any effect on his benefit and pensions?

Thanks
Sam

As Mojisola has stated, How is he getting at State Pension? He can't get that till he is 65. If you mean Pension Credit, then he is on a means tested benefit and has to declare his capital, the first £10k is disregarded and then £1.00 for every £500 above that.

seven-day-weekend

Actually, reading your post again you say he has his state Pension. He can't be having it if he is only 61. He is probably getting Pension Credit, which is a means-tested benefit for over-60s to make their income up to a minimum amount (£137 a week for a single person and £209 for a couple). This can be affected by savings.

See this from the Benefits Now Website:
http://www.benefitsnow.co.uk/pc/capital.asp


For every additional £500 worth of capital over £6000 (£10000 after November 2009), the DWP will add £1 to your income.



So as he has £15000 of capital, it seems that for means-tested purposes he must add £10 a week to his income for the purpose of the means test. This may put him over the minimum income mentioned above that qualifies him for Pension Credit. But it will still not affect his IB.

scorpiana

Maybe I have the state pension wrong. but he is definately getting his old works pension. Thank you I will double check the details with him.

scorpiana

Thank you very much for your response. I will check all details with him. So if he has £10000 in the bank then he is ok and none of his current income (by whatever means) is effected