MSE News: Workplace pensions face shake-up - with a crackdown on duff schemes

gadgetmind

Also note that means testing of the state pension (via minimum pension guarantee) is being replaced by a larger basic state pension.

Even those who think they *might* lose out on benefits pre-retirement (even though they'll have the same money) will be better off in retirement having a pension above and beyond state pension.

dunstonh

steve_jackson wrote: »

The first £71.80 of a workplace pension can become worthless. If you are made redundant you can draw workplace pension from the age of 55. As you cannot get state pension for another 10 years plus you will probarbly sign on as unemployed while looking for a job. The workplace pension will be means tested and anyone without a pension and having NI stamps up to date will get job seekers allowance but you won't. you will have actually saved for your own unemployment benefit. It takes a long time to acrue a meagre pension of £71 a week as well. Think about it???

You tend to find that the benefits agency use the scheme retirement age. Not age 55 as the age they will start using it against means tested benefits.

I have helped a number of people over the years who are on benefits in late working life and in most cases the pensions were disregarded. On a couple of occasions they were included from age 60 (but not earlier years) as the scheme age on those was set up as 60 and that is what the documentation showed.