query, if on benefit can you have a pension

freezspirit

Over the past week I've been reading other threads where people have mentioned having or starting a personal/private pension for their children. So starting a pension before/when not working.


Now I'm thinking maybe I should be thinking about my future and start a small pension, something like £20 per a month but can't find any information as to whether it would affect my benefits in the short term or long term.


What would pension contributions be classed as?

cattie

A pension will only be counted as income for benefit purposes if you are actually claiming/receiving a pension. Simply paying into a pension plan has no affect on any benefits you might need or be entitled to in the future.

freezspirit

Ok if its not counted as income until its paid out, would it then be classed as saving.

Voyager2002

freezspirit wrote: »

Ok if its not counted as income until its paid out, would it then be classed as saving.

No, so long as it is a proper pension plan.

poppasmurf_bewdley

freezspirit wrote: »

Over the past week I've been reading other threads where people have mentioned having or starting a personal/private pension for their children. So starting a pension before/when not working.


Now I'm thinking maybe I should be thinking about my future and start a small pension, something like £20 per a month but can't find any information as to whether it would affect my benefits in the short term or long term.


What would pension contributions be classed as?

Why on earth would you want to start a pension for your children? Surely you need to sort out a pension for yourself, or an insurance for your children should something happen to you?

rogerblack

cattie wrote: »

A pension will only be counted as income for benefit purposes if you are actually claiming/receiving a pension. Simply paying into a pension plan has no affect on any benefits you might need or be entitled to in the future.

Paying into a pension will often reduce your effective income for benefits purposes.
For example, half your payment into a pension is neglected as income for carers allowance purposes.

freezspirit

poppasmurf_bewdley wrote: »

Why on earth would you want to start a pension for your children? Surely you need to sort out a pension for yourself, or an insurance for your children should something happen to you?

I don't have any children, to be honest at this moment in time don't want children but what I was referring to that other people in other threads had started pensions for their children along side their own - sorry if that wasn't clear.

freezspirit

rogerblack wrote: »

Paying into a pension will often reduce your effective income for benefits purposes.
For example, half your payment into a pension is neglected as income for carers allowance purposes.

At the moment my understanding of my benefits are DLA low mobility, income support - sda and carers premium/addition (not sure what its classed as).


I get the carers part for looking after my older brother, although the DWP know I also care for both my elderly parents it doesn't leave much time for myself or to have a life so that is why I'm now worrying about my future.


So if I started a pension would my benefits be affected. Sorry rogerblack not quite sure what you mean, they would consider half the pension as income?