New Pension rules and Long term Care

ziggie13

The current discussions on taking your pension out after the age of 55 all seem to ignore the possibility of dealing with care home fees.


I have a couple of low value money purchase pension pots which I have not used.


If they are in this state are they taken into account for paying out on home care costs.


If when it becomes likely that I need a care home, (I believe it is a 1 in 3 chance), then should I cash them in and spend the money?

kidmugsy

I rather expect that the Conservative manifesto might have things to say about pensions-and-care. But I doubt that they'll be in the next (May) government. Maybe they'll be in the next (October?) government.

atush

I think, that if the pensions have not been commenced, they tend to be safe now from means testing, bankruptcy, creditors etc.

BUT, the point could be is if you are older, and COULD commence them they might have a go.

So far, as far as I can see (which isn't far) people who soend their pension or give it away are in trouble for means teting, care homes etc as they will have been deroiving themsleves of capital. but if yo haven't spent it, and it it still there, it is not legally your money (ie it is under trust) so I dont think it can be easily taken?

But even now if you are the age or over to commence a pension and you dont take it, it is considered deprivation of capital if you dont re means testing?

I mean, you dont have to take it at age 55, but you might be required to once you reach SPA?

System

It's such a fundamental and obvious point that you might have thought the government would have thought about it before making statements that people can now treat their pensions as a bank account.