Notional income

redleader99

Am I correctly being informed that although my company pension scheme has a normal retirement age of 65, that I will not be eligible to benefits as I could take my pension now albeit at a lower rate and therefore the fact that i am trying to wait another year, when I will be 65, barrs me from receipt of benefits?? I have been receiving contribution based job seekers but this has now stopped. I was told that I cannot be forced to take my pension early, it will be assumed that I am in receipt of it(classed as notional income):mad::mad:

Horseunderwater

Would you qualify for income based JSA ?

pmlindyloo

Without further information it is very difficult to help.

As you are 64 (?) you are actually eligible for Pension Credit.

I am unsure why you are on JSA unless it is because it is contribution based and your other household income/savings means you are not entitled to income based JSA.

So, when you talk about 'receipt of benefits' which ones are you referring to?

Most benefits are means tested so any income/savings from you and a partner would be counted.

As regards your question about 'notional income' with regard to Pension Credit, the regulations state that occupational pensions would be regarded as notional income if they were deferred.

You say the pension would normally be paid at 65 but you could take it earlier. I am unsure whether this would be classed as being deferred because you want to wait until the 'normal' age of 65.

I suspect that decision maker would have to make a judgement on this.

The regulations are detailed here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/258148/pc-10s.pdf (page 24 and 25)

Having said that we need to know your financial circumstances as you may not be entitled to any benefits because of your present 'household income' and savings.

Hope this helps a little.

xylophone

You need to be careful with the term "deferred".

For example, let us say that X leaves a job which provided an occupational pension scheme. He becomes a "deferred" member of the scheme because the NRD for that scheme is 65.

It would be possible (with the agreement of the Scheme's Trustees) to take a pension from 55 but with actuarial reduction which could be as much as 50% of the value of the pension.

In such circumstances (and where normal advice would be to leave the pension in place until NRD), it would be unreasonable for the DWP to claim "notional income"?

Take another case where X had reached NRD for his scheme but chose not to claim his pension - this would indeed be choosing to defer so that it would be perfectly reasonable for the DWP to regard the unclaimed pension as "notional income"?

pmlindyloo

xylophone wrote: »

You need to be careful with the term "deferred".

For example, let us say that X leaves a job which provided an occupational pension scheme. He becomes a "deferred" member of the scheme because the NRD for that scheme is 65.

It would be possible (with the agreement of the Scheme's Trustees) to take a pension from 55 but with actuarial reduction which could be as much as 50% of the value of the pension.

In such circumstances (and where normal advice would be to leave the pension in place until NRD), it would be unreasonable for the DWP to claim "notional income"?

Take another case where X had reached NRD for his scheme but chose not to claim his pension - this would indeed be choosing to defer so that it would be perfectly reasonable for the DWP to regard the unclaimed pension as "notional income"?

Absolutely agree with this.