Postponing my pension?

nina_simone

I am due to receive my Diageo Pension next year when I am 60. I had a letter from them explaining my options to change it from a Defined benefits to Defined Contribution etc. I am in the ESA support group at the moment. My real question is do I have to take my pension at 60 or can I postpone taking it until I am 66 which is when I am due to retire.

xylophone

If your scheme pension age is 60 and the pension is available to you then, even if you did not draw it, you could be treated as though you had the income under deprivation of income (notional income) rules?

See page 13

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS81_Calculating_income-related_Employment_and_Support_Allowance_fcs.pdf?dtrk=true

I had a letter from them explaining my options to change it from a Defined benefits to Defined Contribution etc.

https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme

Any receiving scheme would almost certainly insist that you had taken advice from an IFA qualified in pension transfers (expect to pay quite a sum for the advice)- this will certainly be the case after April 6.

nina_simone

Does this mean I will still be allowed to take my pension monthly. Reducing my ESA by that amount, or will I be forced to take the full capital value as it is under (£30k) leaving me with no pension when I retire at 66?

jem16

nina_simone wrote: »

Does this mean I will still be allowed to take my pension monthly. Reducing my ESA by that amount, or will I be forced to take the full capital value as it is under (£30k) leaving me with no pension when I retire at 66?

Your Diageo pension pays out monthly so there should be no issue taking it monthly as that is what a pension is designed to do.

xylophone

You may wish to obtain a state pension statement after 6 April 2016.

https://www.gov.uk/new-state-pension/overview