April 2015

Francesca7777

Like I said, it's case by case. The DWP are not as autocratic as you may think. As long as you are open with them and engage with them and do not attempt to hide things from them they will work with you and look at your personal circumstances. The Decision Makers have the power to apply discretion to the vast subject of 'deprivation of income', and are even less autocratic when it comes to tribunals. I'm sure, that if someone received a pension of, say, £500K (unlikely that they would take out that sort of amount in one lump because of the high income taxes that would be due), and used that to top up their £100K equity to buy a £600K house, they would not be quite so flexible and would question the benefits claim. No one 'needs' to live in a £600K house, and it could easily be deemed excessive. However, if your equity and pension together does not exceed, say, £150K, there could be some understanding applied with regard to what one reasonably has to pay these days to have buy an adequate home, given the current property market. Yes, I expect that they will generally see 100% cashed in pensions as "income", but you can get special dispensation in many cases. I know the DWP comes under a lot of criticism and can be seen to be this despotic and faceless government agency that just does everything "by the book". But their Decision Makers are there for a reason - they make rulings on individual cases, and the few I've spoken to I've found extremely helpful and very knowledgable. For example, not everyone is penalised in the same way when it comes to benefits fraud - some are simply reprimanded, some have penalties applied, some have deductions made to their benefits, some are given a deadline in which they have to pay the funds back, some have their benefits stopped altogether, some are deported or end up in prison. So many factors are considered - premeditation, children, what the money was spent on, etc, etc. Equally if you are straight and open with them they will be prepared to work with you in a fair way. Just don't try and deceive them or rip them off, or buy secret villas in Spain. Then, if they find out, they will take no prisoners. Quite right too.

Francesca7777

dunstonh wrote: »

As a tax payer is paying your benefits, you could show a bit more respect to others and stop being so ungrateful.

OMG, I can't even believe you said that. There's no way you can be a working financial adviser with a comment like that. You're probably some retired person with nothing else better to do but be a busy-body.

Because I'm receiving incapacity benefit (despite working for 40 years with an income that placed me in the higher tax bracket for virtually all of that time), I should somehow be grateful to you? For what? The fact that you are working and paying taxes (which I question), or the fact that you gave me advice that was flawed?

Crikey, I thought you sounded a bit obnoxious before, NOW you've lost ALL credibility.

FatherAbraham

Francesca7777 wrote: »

Crikey, I thought you sounded a bit obnoxious before, NOW you've lost ALL credibility.

It would take more than that for Dunstonh to lose all credibility.

Warmest regards,
FA

Francesca7777

FatherAbraham wrote: »

It would take more than that for Dunstonh to lose all credibility.

Warmest regards,
FA

"Lost all credibility" with ME obviously, I can't begin to presume (or even care) about what others think. "Presumption"... always a BIG mistake I find.

gterr

dunstonh wrote: »

As a tax payer is paying your benefits, you could show a bit more respect to others and stop being so ungrateful.

That's totally out of order.

richbeth

Francesca7777 wrote: »

Oh for God's sake! Why do I have to explain all this? Check the original post - I just wanted to know if the law had been enacted yet, that's it!!! I've spoken to the DWP Decision Maker, AND I have it in writing - my benefits will NOT be affected by the pension sum as long as I use it within 26 weeks of receipt towards purchasing a property. It's something one has to get individual dispensation for from the Decision Maker, which I have done, just as you have to do with regard to capital from property sales (assuming it's your main residence). Happy now? Do you want me to go to the corner shop, scan the latter, and post it on here too?

Just an observation but if you'd have just said thanks for the input at this point this could have ended as a happy helpful thread which raised an interesting point re ring fencing. These are conversations, they wander off topic, usually because people are trying to be helpful there is no need to make a drama out of it.
R

Francesca7777

richbeth wrote: »

Just an observation but if you'd have just said thanks for the input at this point this could have ended as a happy helpful thread which raised an interesting point re ring fencing. These are conversations, they wander off topic, usually because people are trying to be helpful there is no need to make a drama out of it.
R

I DIDN'T make a drama out of it. I asked a question, has the law been enacted yet? Yes... No. That's it! Then I have all these busy-bodies trying to ask me about my personal circumstances, trying to find out WHY I've decided to cash in my pension, assuming that I am ill-informed and intent on blowing the lot on a load of nonsense, and, worst of all, giving me flawed advice - and advice that I didn't even ask for! Save the advice for people who are actually asking, or even paying for it, if indeed any of you are working financial advisers (which I seriously doubt - you all seem to have far too much time on your hands) ... and... just a tip... try to make the advice accurate, WHEN someone asks for it. I think I'll just stick with the TPAS help-line - I get useful, straight and accurate advice without all the "Mr You-Don't-Wanna-Do-It-Like-That" nonsense. Remember? Harry Enfield? You should all use that character photo as an avatar. The only reason I keep responding is because I have the box ticked that forwards all responses to my email, and I can't resist responding to all the idiocy. I'm going to un-tick that box right now, and I would NEVER recommend this forum to anyone seeking pension info - it's just inhabited by bored (and, in some cases, quite unpleasant) busy-bodies. OVER... and OUT!

SallyG

https://www.gov.uk/government/consultations/freedom-and-choice-in-pensions
"The government would like to gather views on its proposals. Once the consultation closes on 11 June 2014 the government will consider all responses and publish a ‘summary of responses’. This will set out how the government intends to proceed."

I think we've yet to see the summary of responses?

Also:
1.10 The government recognises that under this new tax system, people will need the right support and guidance to make decisions that best suit their evolving personal circumstances. That is why the government will introduce a new guarantee that everyone with a defined contribution pension will be offered free and impartial face-to-face guidance on their financial choices in retirement when they retire. The government will introduce a new duty on pension
providers and trust-based pension schemes to deliver this ‘guidance guarantee’ and this will take effect by April 2015."