Will pensions changes lead to criminals taking advantage?

SallyG

What will the response be if I blow the lot and then ask for state benefits to see me out?

dunstonh

SallyG wrote: »

What will the response be if I blow the lot and then ask for state benefits to see me out?

Pension credits are being abolished as part of the new state pension.

It will be interesting to see whether benefits agencies treat massive erosion of pension funds as deprivation of assets.

greenglide

dunstonh wrote: »

Pension credits are being abolished as part of the new state pension.

Pensions Credit will still exist under nSP.

The difference is that the nSP standard amount is to be more than the PC guaranteed single amount so the majority of people won't qualify. People who have less than the full amount of nSP will get PC subject to the means test.

antrobus

dunstonh wrote: »

...It will be interesting to see whether benefits agencies treat massive erosion of pension funds as deprivation of assets.

Interesting question.

Of course, the value of someone's pension fund is disregarded when assessing how much capital they have for the purposes of means testing. So I'm not certain whether anyone could be held culpable of depriving themselves of an asset that was specifically excluded from consideration in the first place.

But I see what you mean. Someone could cash in their pension fund, blow a lot of it on booze, drugs, and women (or men), fritter away the rest on non-essentials, and then present themselves to the authorities as destitute.

I have no idea what is intended to be done in such circumstances.

greenglide

blow a lot of it on booze, drugs, and women (or men), fritter away the rest on non-essentials

So booze, drugs and women (or men) are "essentials"?

Interesting:)

p00hsticks

greenglide wrote: »

Pensions Credit will still exist under nSP.

The difference is that the nSP standard amount is to be more than the PC guaranteed single amount so the majority of people won't qualify. People who have less than the full amount of nSP will get PC subject to the means test.

They'll also presumably be eligible for local housing allowance / housing benefit if in rented accomodation and possbily council tax subsidies

p00hsticks

greenglide wrote: »

So booze, drugs and women (or men) are "essentials"?

Interesting:)

I think antrobus is paraphrasing George Best, who famously said "I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

Probably before your time.....

greenglide

Probably before your time.....

I dearly wish it was before my time, but it wasn't.

Failing memory is my only excuse and that is an age thing .................

seven-day-weekend

dunstonh wrote: »

Yes you can. When the new state pension comes in, there wont be pension credits. So, if you blow your money, it is only your own lifestyle you are causing a problem with.



Sensible people will do that.



Its a good idea. If someone saved all their life into S&S ISAs, they would not have these restrictions. So, why with pensions?

Fair point. I hadn't thought of that. Presumably funding the world cruise and Ferrari by using your Pension Fund would be classed as deprivation of capital as it would be if the individual spent all their ISA money on a similar thing and then tried to claim State Benefits because they had no money left.

Linton

antrobus wrote: »

Interesting question.

Of course, the value of someone's pension fund is disregarded when assessing how much capital they have for the purposes of means testing. So I'm not certain whether anyone could be held culpable of depriving themselves of an asset that was specifically excluded from consideration in the first place.

But I see what you mean. Someone could cash in their pension fund, blow a lot of it on booze, drugs, and women (or men), fritter away the rest on non-essentials, and then present themselves to the authorities as destitute.

I have no idea what is intended to be done in such circumstances.

The deprivation of assets surely isnt the extraction of the full pension pot, rather the expenditure on the Ferrari. After extraction the cash becomes a normal asset treated in the same way as any other cash savings.