Personal Pension and Housing Benefit

blenheim

Firstly please accept my apologies if on wrong board.

I turn 60 in April and have received correspondence from a pension fund relating to a job I had in late 70's and 80's. First contact I've had from them for about 25 years. I believe it is a final salary scheme.

One of the options given is to defer. I am on a low wage and will not be in a position to retire until I reach State Pension Age (66).

I also claim LHA (housing benefit). Due to claiming a means tested benefit does anyone know if deferring would have any implications regarding my claim for housing benefit?

molerat

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS17_Housing_Benefit_fcs.pdf?dtrk=true

Deprivation of income (notional income)
Sometimes you may be treated as having income that you do not actually have. This is known as notional income. This might happen if you fail to apply for income you are entitled to, or if you have deliberately got rid of income with the intention of increasing your benefit entitlement. You should seek further advice if this rule is applied to you.

blenheim

molerat wrote: »

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS17_Housing_Benefit_fcs.pdf?dtrk=true

Thank you for the link Molerat. Unfortunately that one is for people over pension credit age. Found factsheet 56 which is for under pension credit age but still couldn't find the answer. I didnt know Age UK produced all these factsheets. They are very informative.

sleepless_saver

You'll probably get a definitive response if you ask about this over on the Benefits board, where the housing benefit/LHA experts are.

jamesd

See DWP benefits and pension freedom and the document linked from it which also mentions HB.

In general if you have not reached Pension Credit age you have the flexibility to choose, after that you don't.

blenheim

jamesd wrote: »

See DWP benefits and pension freedom and the document linked from it which also mentions HB.

In general if you have not reached Pension Credit age you have the flexibility to choose, after that you don't.

Thank you for your help jamesd. The link refers to a defined contribution pension but mine is a final salary and I'm led to believe it is a defined benefit pension. Not sure how much difference if any this makes.

blenheim

sleepless_saver wrote: »

You'll probably get a definitive response if you ask about this over on the Benefits board, where the housing benefit/LHA experts are.

Thank you sleepless saver. I will try the benefits board.

jamesd

Yes, final salary is a defined benefit pension type.

xylophone

Do you have the right to draw the pension in full and without actuarial reduction at age 60? That is to say, is 60 Scheme Pension Age?

If so, if you defer, "notional income" treatment might apply.

blenheim

xylophone wrote: »

Do you have the right to draw the pension in full and without actuarial reduction at age 60? That is to say, is 60 Scheme Pension Age?

If so, if you defer, "notional income" treatment might apply.

Hi xylophone. Yes I think so. That could be why they have written to me. I left the company in the late 80's and have had no communication with them since I changed my name in 93.

I don't understand very much about pensions at all but there could be a difference in the way a defined benefit pension is considered against a defined contribution in means tested benefit calculations.

bigadaj

blenheim wrote: »

Hi xylophone. Yes I think so. That could be why they have written to me. I left the company in the late 80's and have had no communication with them since I changed my name in 93.

I don't understand very much about pensions at all but there could be a difference in the way a defined benefit pension is considered against a defined contribution in means tested benefit calculations.

Little practical difference apart from a defined benefit makes the sums being paid out, or not as the case may be, clearer.

Others may now better but if you don't claim at the normal retirement age then it may well affect benefits.