Are pensions capital?

r_i_c

atush wrote: »

AS you were in the TPS, were you a teacher?

If so, surely you could pick up some supply work? Every retired teacher at my boys primary signed on for supply work and often turned up in school after retirement lol

Yes indeed, supply work is an option and I have forwarded my details to Reed (company), and there are other options as well. But right now I'd really like to know what the CAB were getting at over the 'draw down' please?

Thanks.

atush

As far as I know (which isn't as I haven't taken a pension yet) the TFLS counts as capital, and DD money counts as income.

And the inheritance when it comes will be capital. So I am sure you wont get means tested benefits by then?

AFAIK, contribution based JSA isn't means tested, but again never claimed so am not sure.

r_i_c

atush wrote: »

As far as I know (which isn't as I haven't taken a pension yet) the TFLS counts as capital, and DD money counts as income.

And the inheritance when it comes will be capital. So I am sure you wont get means tested benefits by then?

AFAIK, contribution based JSA isn't means tested, but again never claimed so am not sure.

Thanks, when you say TFLS and DD what do these letters stand for please? Sorry, I'm in the middle of probate forms at the moment so my mind is a bit of a carousel. Yes, I know the estate will be capital, but that is weeks away, and it is the gulf of uncertainty between now and then which concerns me currently.

Yes again, I was advised that the first 6 months of JSA - should I need to be on this - would be contribution based, and my carer's allowance is class A contributions [NICs], so possibly the capital versus non-capital debate over my SIPP won't rear it's hoary old head?

Thank again.

xylophone

You have taken your Pension Commencement Lump Sum from your SIPP and put the money in your bank account.

This money is now capital.

Your TPS Normal Retirement Age is 60 so as discussed before, if claiming Means Tested Benefits you would be expected to draw your pension - if not, you would be assessed as having notional income and possibly notional capital (if there is an automatic lump sum with no option).

Once you take your lump sum from the TPS and put it in your bank account it becomes capital.

Your monthly pension will be income but if you save it will become capital in due course.

With regard to the money remaining in the SIPP, it is not capital while in the pension scheme and presumably you would not be required to draw it down ( or have it assessed as notional income) until you reached Pension Credit Age?

Presumably the DWP will advise?

http://www.thisismoney.co.uk/money/pensions/article-2930118/People-benefits-warned-care-cashing-pensions.html

cte1111

Firstly, the CAB are not always correct. They are just helpful volunteers and may sometimes have different interpretations than others.

TFLS - I think they mean your lump sum from the Teacher's Pension
DD - in this context means draw down

For now, you only need to worry about the money that you have already drawn down. This is fine to spend on day to day living. I can't see why you shouldn't also claim Jobseeker's Allowance, as you are indeed available and are looking for work. Why not start the process with the Jobcentre and they will be able to tell you if there are any issues.
https://www.dwpe-services.direct.gov.uk/portal/page/portal/jsaol/lp

jem16

cte1111 wrote: »

TFLS - I think they mean your lump sum from the Teacher's Pension

Not in this case. Atush simply mean Tax Free Lump Sum from the OP's SIPP.

atush

Correct.

and god I wish they would give us back our individual stickies esp the one with abbreviations. It has been years since they took it and stashed it where no one can see it.

r_i_c

xylophone wrote: »

You have taken your Pension Commencement Lump Sum from your SIPP and put the money in your bank account.

This money is now capital.

Thank you. No problem here - anything in my bank account is capital, I have no issue with this.

Your TPS Normal Retirement Age is 60 so as discussed before, if claiming Means Tested Benefits you would be expected to draw your pension...

Do you mean as of now - but why? Because I am not 60 until next spring.

- if not, you would be assessed as having notional income and possibly notional capital (if there is an automatic lump sum with no option).

Once you take your lump sum from the TPS and put it in your bank account it becomes capital.

As above - even I regard anything in my bank account as capital. But who is suggesting I have taken a lump some from the TPS please? The TPS is not due me until next year when I am 60. I have not touched the TPS and do not intend to until I have reached the TPS retirement age.

Your monthly pension will be income but if you save it will become capital in due course.

Am becoming very confused now. Why are we discussing TPS events which are not due until 2016, have I missed something, apologies if so.

With regard to the money remaining in the SIPP, it is not capital

Thank you - this is good news. The CAB are still deliberating over this question. The deliberation began on Monday and I am to be informed of their decision tomorrow morning.

...while in the pension scheme and presumably you would not be required to draw it down (or have it assessed as notional income) until you reached Pension Credit Age?

This is also good news - so I am not to be (again) bullied by the DWP over this.

Presumably the DWP will advise?

I do wonder. Last time it was I advising local government about their own rules regarding capital, pensions and savings. I had a similar run-in with the DWP at one stage. Neither local government nor central government appear to be on the ball here. My whole reason for posting at MSE ~ because if I have the knowledge before they start in with the bull, I stand a much better chance of not being put through the bureaucratic mangle again.

http://www.thisismoney.co.uk/money/pensions/article-2930118/People-benefits-warned-care-cashing-pensions.html

r_i_c

cte1111 wrote: »

Firstly, the CAB are not always correct. They are just helpful volunteers and may sometimes have different interpretations than others.

TFLS - I think they mean your lump sum from the Teacher's Pension

I have not touched my teacher's pension.

DD - in this context means draw down

The draw down basically saved my life - I am so grateful to MSE for pointing me in this direction, I had no idea :-o

For now, you only need to worry about the money that you have already drawn down. This is fine to spend on day to day living.

It is also enabling me to administer my late mother's Will.

I can't see why you shouldn't also claim Jobseeker's Allowance, as you are indeed available and are looking for work. Why not start the process with the Jobcentre and they will be able to tell you if there are any issues.
https://www.dwpe-services.direct.gov.uk/portal/page/portal/jsaol/lp

Thank you. I am waiting till the last week of my carer's allowance (is under £10 per day btw) until I apply for JSA(C) if I haven't picked up reliable, regular work by then.

xylophone

Do you mean as of now - but why? Because I am not 60 until next spring.

No, at the NRA for your scheme which is 60.

The position is that if it is due and payable then either you take it or are assessed as though you had.

The position with the SIPP is different in that Pension Credit Age seems to be the determining factor.