Declaring savings

K4Kaz_2

I'm on JSA (no other income), and about to claim 25% of my private pension fund. Do I have to declare this to the Benefits Agency (or whatever they're called these days) if it's less than £8000?

Paully232000

depends if on cont JSA, or income based JSA.
If on cont based then no your savings etc is not taken into consideration (I am guessing the £8000 is a lump sum).

If income based JSA then you have to declare and anything above £6000 is counted as a reduction in benefits of £1 per £250 as far as I am aware.

K4Kaz_2

Hmmm, thanks. I'm on income based JSA and it's probably going to be just over £6000.

(Thanks for your prompt reply btw

KxMx

Always best to declare if there is any doubt, especially income based benefits.

[Deleted User]

you may also be assumed to receiving your private pension if you take the 25%,a complicated area on which you need experienced advice,i assume you are over 55?

rogerblack

I am also unsure if the unclaimed 75% could be considered capital.

Horseunderwater

rogerblack wrote: »

I am also unsure if the unclaimed 75% could be considered capital.

If that remains in the pension scheme/fund then I do not see how it could be capital as it has not been paid out to the OP.

tomtom256

Horseunderwater wrote: »

If that remains in the pension scheme/fund then I do not see how it could be capital as it has not been paid out to the OP.

It would depend if they can draw on it at anytime or if they have chosen to defer it, in which case they would treat them as having received it and/or class it as capital.

somethingcorporate

Given they could not access that 75% capital to live on then I very much doubt it will be counted as capital.

Horseunderwater

Providing that you have proof that you are not being paid the pension early and have just opted to be paid the 25% lump sum then I am fairly certain that is would be treated purely along the lines of capital, so as another posted stated - if £6k or under doesn't need to be declared - but for each £250 (or part thereof) over £6k you do need to tell them as they take away £1/£250 over the £6k and yes if that amount is £6,001 you would still lose a £1. So if the lump sum was £6.35k then you'd lose £2/week from your ESA if that makes sense.

Coraline

From my experience it's up to the council/dwp whether they decide it's capital. When I moved here I had roughly £40,000 in a private pension. I could access it at any time, but would face enormous tax penalties and lose about 25% of it by withdrawing.

I explained the situation to the council (at the time my partner was receiving housing benefit) and they said they wouldn't count it because of the penalties and taxes from withdrawing early from the retirement fund would be severe.

However when we ran out of money and her job wasn't covering the bills, I had no choice but to cash out the pension and lost about £10,000 of it. Now that it was cash in the bank I called the council and informed them of the change and they stopped the benefit. So it worked out pretty well (well except for losing all that money in penalties and tax).

Anyway when in doubt, just describe the exact situation and they'll decide if it's capital or not.