Pension/ Jobseekers allowance

bonnie43uk

Hi, I wonder if someone would know the answer to this question: I hit 55 in about a month or so, and I've been told I can access my personal pension, I've been told I can take 25% as a lump sum, which works out about 10K. and the rest will be about £25 a month in pension payments, which may not sound much, but to me, it's a life saver because currently I am on JSA, and living on £71 a week, I owe about £3k in debts which I'd like to pay off once I get that £10k, which will leave me about £7k, am I ok to bank that for emergencies, or will it affect my JSA.? ..if so, bt how much?. I'm quite an honest person and don't want to find I've done something illegal.

Lokolo

The £25 a month could be increased if you go and see an advisor but I assume you have £40k in your pension approximately. The £25 is also based on you taking your pension today. If you take it at a future date (5 years), then it could be worth more, say £30 a month (not a guarentee though!)

The second type is ‘income-based Jobseeker’s Allowance’. It’s
based on your income and savings.
If you have savings over £16,000, you can’t usually get incomebased Jobseeker’s Allowance. Below this limit, for each £250 of
your savings over £6,000, your benefit is reduced by £1 a week.

So assuming you are on income based, you would have your JSA reduced by £4 a week.

bonnie43uk

Thanks for your reply.. i get totally confused with this "contribution based" and "income based" JSA,.. I've been on JSA for about 2 years, and i dont know which one i get. Basically, I've worked virtually all my life since leaving school in 1974, so i've paid decades of NI, and tax.
Regarding an Advisor, I rang a recommended advisor this week, and they told me their advice would cost me £600, thats £600 i dont have. I am happy getting £25 a week in pension money to top up my £71 jsa a week, the £10k lump sum will be a massive help for me to get me out of a few debt problems. I have tried getting on ESA, but because i can walk and move my arms I've been told I am A1 fit for work, dispite me having major arthritic pain and lower back pain from decades of heavy lifting at work. ATOS found me fit. But thats a whole other story :-( Thanks for your comments Lokolo, very helpful ta.

xylophone

I've been on JSA for about 2 years

You would have had contribution based for six months and then income based?
http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@benefits/documents/digitalasset/dg_199994.pdf

I owe about £3k in debts which I'd like to pay off once I get that £10k,

Might need care - ask on the benefits board?