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Does a pension (vs ISA) keep your money safe in case of job loss?
fullahmoolah
Posts: 18 Forumite
Hi I'm just wondering if anybody knows the answer to this one:
say you have 20 grand in savings. If you have it in an ISA, I know that you will not get Job Seekers Allowance if you lose your job because you will be over the 16k limit. But say you have the 20 grand in a stakeholder pension instead. Is it the case that you would still get Job Seekers Allowance, since you can't access the pension money?
say you have 20 grand in savings. If you have it in an ISA, I know that you will not get Job Seekers Allowance if you lose your job because you will be over the 16k limit. But say you have the 20 grand in a stakeholder pension instead. Is it the case that you would still get Job Seekers Allowance, since you can't access the pension money?
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Comments
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Money in a pension has no impact on means tested benefits unless you are within retirement age range where the pension can be commenced.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Contributory JSA?you will not get Job Seekers Allowance if you lose your job because you will be over the 16k limit.
http://www.turn2us.org.uk/information__resources/benefits/working_or_looking_for_work/jobseekers_allowance.aspx?page=3780 -
Money in a pension has no impact on means tested benefits unless you are within retirement age range where the pension can be commenced.
What if you are in a stakeholder scheme with an NRD of 65 and you are made redundant at 56. You have a sizeable six figure pension pot after many years service. You have less than £3,000 in savings outside of the pension.
Could you be forced to cash the pension early for the 25% PCLS which would bar you from receiving any means tested benefits?0 -
ffacoffipawb wrote: »What if you are in a stakeholder scheme with an NRD of 65 and you are made redundant at 56. You have a sizeable six figure pension pot after many years service. You have less than £3,000 in savings outside of the pension.
Could you be forced to cash the pension early for the 25% PCLS which would bar you from receiving any means tested benefits?
I have not seen the benefits agency request details at 55 or late 50s. I have seen them do it at 60 (and above) though.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
No, I don't think you're ever forced to take it early - the earliest will be the NRD of the scheme or your pension credit age.ffacoffipawb wrote: »What if you are in a stakeholder scheme with an NRD of 65 and you are made redundant at 56. You have a sizeable six figure pension pot after many years service. You have less than £3,000 in savings outside of the pension.
Could you be forced to cash the pension early for the 25% PCLS which would bar you from receiving any means tested benefits?0 -
Aren't pensions written as discretionary trusts? Only assets owned absolutely count as personal wealth.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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How would that work then if you had the money in your I.S.A and was made redundant, could you transfer a certain amount ( or all) into a pension ?0
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How would that work then if you had the money in your I.S.A and was made redundant, could you transfer a certain amount ( or all) into a pension ?
There have been cases on MSE of posters complaining that money in their ISAs (which they regarded as their pension) was taken into account when they were assessed for means tested benefits.
That being the case, putting the money into a pension would count as deprivation of capital?0 -
Yes, quite likely if one of the motives for the transfer was to get benefits.There have been cases on MSE of posters complaining that money in their ISAs (which they regarded as their pension) was taken into account when they were assessed for means tested benefits.
That being the case, putting the money into a pension would count as deprivation of capital?0
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