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pensions and tax credits

i am 57 and thinking about taking my 20000 pension pot in whole and paying off my mortgage i am still working part time and get working tax and child tax credits for my 10 year old will doing this affect my tax credits

Comments

  • Mensch
    Mensch Posts: 54 Forumite
    It would, as I understand it.


    You'd be adding £14700 taxable income to your annual income but, looking on the bright side, for one year only.
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you cash in your personal pension, what will you live on in retirement......


    State pension isn't going to cover it and you wont be able to claim means tested benefit.


    I woulddo lots of research.....
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    What's the interest rate on the mortgage?
    Free the dunston one next time too.
  • pinkdragon
    pinkdragon Posts: 42 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    We took an 18,000 pot from my husband's pension last year and our child tax credits went down from around £600pm to £46pm.
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