Are pensions capital?

r_i_c

jem16 wrote: »

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

I've just been told the SIPP is not to be considered as capital - which is it to be please?

Xylophone [today]: "With regard to the money remaining in the SIPP, it is not capital"

The lump some represented 25% of a quarter of the entire SIPP - a fraction, not a lump sum calculated on the draw down of the entire SIPP. The SIPP itself is not being drawn weekly, monthly or at any regular period at all, until I retire - possibly in the case of the SIPP at state retirement age which is 66 for me.

Many thanks.

jem16

r_i_c wrote: »

I've just been told the SIPP is not to be considered as capital - which is it to be please?

I was only clarifying the TFLS initials that you asked to be clarified. I haven't said anything about capital.

As you have been told the money remaining in the SIPP is not capital. The tax-free lump sum that you took is capital.

r_i_c

xylophone wrote: »

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.

My position is unchanged here, I intend to take it [TPS] at 60, because there is no advantage in deferring it.

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

I am 59 & don't think I would qualify for that - for some time to come:- "The qualifying age for Pension Credit is gradually going up to 66 in line with the increase in the State Pension age for women to 65 and the further increase to 66 for men and women. "

https://www.gov.uk/pension-credit/eligibility

All I wanted to know was would the DWP take exception to my drawing down a fraction of my SIPP as a one-off withdrawal to get me through the uncertain period between my mother dying and her estate being administered; I'm also the executor.

Many thanks.

r_i_c

jem16 wrote: »

I was only clarifying the TFLS initials that you asked to be clarified. I haven't said anything about capital.

That's fine with me. Do we in fact know what those letters stand for - for the sake of future reference please?

As you have been told the money remaining in the SIPP is not capital. The tax-free lump sum that you took is capital.

Thank you. I have no problem with anything in my bank account being considered as capital.

jem16

r_i_c wrote: »

That's fine with me. Do we in fact know what those letters stand for - for the sake of future reference please?

That's what I just did. Look at the initials.

jem16 wrote: »

Atush simply mean Tax Free Lump Sum from the OP's SIPP.

T = Tax
F = Free
L = Lump
S = Sum

TFLS = Tax Free Lump Sum

atush

r_i_c wrote: »

I've just been told the SIPP is not to be considered as capital - which is it to be please?



The lump some represented 25% of a quarter of the entire SIPP - a fraction, not a lump sum calculated on the draw down of the entire SIPP. The SIPP itself is not being drawn weekly, monthly or at any regular period at all, until I retire - possibly in the case of the SIPP at state retirement age which is 66 for me.

Many thanks.

The TFLS, ONCE YOU TAKE it not before, becomes capital. After all, until you take it, it remains in the pension/

When the money is in your sipp be it taxed or tax free is not either capital or income.

atush

r_i_c wrote: »

My position is unchanged here, I intend to take it [TPS] at 60, because there is no advantage in deferring it.



I am 59 & don't think I would qualify for that - for some time to come:- "The qualifying age for Pension Credit is gradually going up to 66 in line with the increase in the State Pension age for women to 65 and the further increase to 66 for men and women. "

https://www.gov.uk/pension-credit/eligibility

All I wanted to know was would the DWP take exception to my drawing down a fraction of my SIPP as a one-off withdrawal to get me through the uncertain period between my mother dying and her estate being administered; I'm also the executor.

Many thanks.

Does your mother have money in her accounts? That used to pay the bills for the house she owns? You can still pay these bills from her money during the process. And the funeral and other expenses that are relevant.

You dont need to use your money for the estate expenses?

r_i_c

atush wrote: »

Does your mother have money in her accounts? That used to pay the bills for the house she owns? You can still pay these bills from her money during the process. And the funeral and other expenses that are relevant.

You dont need to use your money for the estate expenses?

Wow - no-one has told me that, especially her bank, where she was on first name terms with the people behind the screens. The answer is a yes, mum had funds in her account. They just told me her estate was frozen except for funeral costs and IHT payouts. At the moment the phone, broadband, house insurance, gas & electricity have all come under my name. This seems ridiculous because I am still technically the carer on a carer's wage of less than ten pounds a day. Perhaps they think I'm a magician and funds will suddenly appear out of thin air? The CAB did ask me to enquire - I then phoned the bank's 'bereavement team' & they told me straight there was no way I could obtain monies from the estate as a sort of hardship fund, they just refused. I was also actually told (in no uncertain terms) to pay the energy bills by a legal forum "because you're now using the energy", I mean, I am coping but for how long?

Thanks anyway - not sure what to do about this now.

r_i_c

atush wrote: »

...When the money is in your sipp be it taxed or tax free is not either capital or income.

Thanks, that's what I need to know.

Please understand that on separate occasions both the DWP and local government have insisted the SIPP be viewed as capital. Accepting that they do not know their own jobs, that does not make months of persecution by salaried people sitting behind desks 100's of miles away any easier to get on with. Local government were within days if not hours of dragging me to court for non-payment of Council Tax because they had frozen my support due to my SIPP ~ meaning due to their incompetence. They backed down at the 11th hour, charges were dropped, without any explanation or apology.

This is why I need to know where I stand. Will update on the CAB.

atush

r_i_c wrote: »

Wow - no-one has told me that, especially her bank, where she was on first name terms with the people behind the screens. The answer is a yes, mum had funds in her account. They just told me her estate was frozen except for funeral costs and IHT payouts. At the moment the phone, broadband, house insurance, gas & electricity have all come under my name. This seems ridiculous because I am still technically the carer on a carer's wage of less than ten pounds a day. Perhaps they think I'm a magician and funds will suddenly appear out of thin air? The CAB did ask me to enquire - I then phoned the bank's 'bereavement team' & they told me straight there was no way I could obtain monies from the estate as a sort of hardship fund, they just refused. I was also actually told (in no uncertain terms) to pay the energy bills by a legal forum "because you're now using the energy", I mean, I am coping but for how long?

Thanks anyway - not sure what to do about this now.

When I was executor of my mothers estate, i went to the bank and set up an executors acct. They transferred funds to it for me

After all, she had a house and bills to pay from her estate.