company pension,will make me worse off.

chrissysmagicbox

hi, fairly new to this site,so hope its put in the right place.
in august i have a small works pension coming to me,as its about the same weekly amount as my pension credit, it seems i will lose it all, which its not so much the money as the fact i will lose all the benefits that come with it, ie dental and glasses and council tax. it seems odd that i am no better off, but worse off although i put into a works pension for about 7 years. i am disabled will be 65 and live on my own. whats the point of having a works pension if i am going to be struggling more with it instead of trying to live a little better ? glad i got that off my chest:mad:

stagey_2

unfortunately this is what can happen and no one tells you when you decide to do the correct thing and save into a private pension scheme. As it is small can you take it as a lump sum? that might make the difference others more knowledgable than moi will hopefully will pop up shortly and advise.

Pollycat

Did you investigate the options mentioned in your other thread?

http://forums.moneysavingexpert.com/showthread.php?p=52116831&highlight=#post52116831

Have you chosen the pension option rather than the lump sum?

Have you spoken to CAB, DWP or seen an IFA for advice?

Jamesd asked some pretty pertinent questions at the end of your earlier thread which could do with answers.

sleepless_saver

As you are disabled and not yet 65, have you considered applying for disability living allowance if you also have care and/or mobility needs?

If you get DLA then, strange as it may seem, you may become entitled to pension credit again, depending on your total income and the level of DLA you get.

Best to apply before you reach 65, as it's attendance allowance after that which has no mobility component. See directgov link for more info and how to apply.

chrissysmagicbox

hi have read all the info, i have disability and claim motability and also lowest living allowance, which i know i will still have. have also read that is it possible to get savings allowance but do not know the amount if any.i am taking a lump sum.as i said previously each week. i have also read that i can get some help if i have under £189 per week but i cannot understand it. oh well will have to bite the bullit, thats life, give with one hand and take with the other thanks for your answers chrissy

xylophone

hi have read all the info, i have disability and claim motability and also lowest living allowance, which i know i will still have. have also read that is it possible to get savings allowance but do not know the amount if any.i am taking a lump sum.as i said previously each week. i have also read that i can get some help if i have under £189 per week but i cannot understand it. oh well will have to bite the bullit, thats life, give with one hand and take with the other thanks for your answers chrissy

Why not make an appointment with a benefits adviser at the CAB to check out your exact situation?

dunstonh

It is very unsual for someone to actually end up worse off with a pension under the current system. In the past it was far more common with small amounts but nowadays the reduction tends not to equate £1 for £1. The current system does allow you to have some income and capital before reductions are made.

jamesd

Best to seek advice from CAB, preferably before you say what you want to do with the pension. They can tell you what you'll get each way of doing things and work out how to make you as well off as possible.

Pension Savings Credit may apply, you can still get the credit if you have an income of £189 a week, more if disabled or have costs such as mortgage interest payments.

annie1975_2

chrissysmagicbox wrote: »

hi, fairly new to this site,so hope its put in the right place.
in august i have a small works pension coming to me,as its about the same weekly amount as my pension credit, it seems i will lose it all, which its not so much the money as the fact i will lose all the benefits that come with it, ie dental and glasses and council tax. it seems odd that i am no better off, but worse off although i put into a works pension for about 7 years. i am disabled will be 65 and live on my own. whats the point of having a works pension if i am going to be struggling more with it instead of trying to live a little better ? glad i got that off my chest:mad:

And they wonder why people wont get a private pension??
Its all right the government saying "we should all be paying into a private pension"....Hello Dave we cant afford to pay into a pension on the measly take home pay we get.
And when people do they are no better off for it.

chrissysmagicbox

hi, have read everything that people have advised , i worked out that my weekly company pension will be exactly what my pension credit is, and have also seen that figure stated above, i will not have any more weekly income as it will be like for like if you see what i mean. the only difference is the lump sum of £8000. which i believe is below the amount i can have, part of this will allow me to arrange my funeral, do my will,and get a few things i need. the rest will go into a isa. i did go to age concern about this and any way i decided to sort it was told that my pension credit would go whatever i decided. maybe i didnt ask the right questions. i went to cab and was advised to go to age concern. oh well, doesnt see much that i can do, so will have to bite the bullet, thanks, sad chrissy:(

Bradfield

Hi

This is just a "long-shot" but I wonder if it might be possible for you to defer payment of your state retirement pension for a couple of years once you start to receive your works pension. This would mean you have to stop claiming your pension credit as you cannot defer state pension whilst receiving certain benefits.

This would mean that you would have to live entirely off your DLA and works pension, plus perhaps the lump sum you get from the works pension. But you would very likely qualify for full Housing Benefit (if applicable) and Council tax rebate, plus help with health costs on the grounds of low income. A deferred state pension is disregarded for these benefits.

This would mean that you would get the full value of your works pension on top of the state pension. You would also have a very nice fat little lump sum from your deferred pension in a couple of years time.