JSA and Private Pension

JSmith321

If someone is over 54 and on JSA can the government force that person to take their private pension (assuming that they have a private pension) i.e. is the pension seen as savings which adversely affects a claim for benefits.?

Bananas123

hello,

no, it's only capital, when it is taken and it is their private pension, so their choice.

https://www.citizensadvice.org.uk/debt-and-money/pensions/nearing-retirement/what-you-can-do-with-your-pension-pot/

BUT it's a really complicated subject and you will probably need to tell people savings / income etc etc etc as could potentially affect benefits dramatically!.

---

if someone has been telling them, to collect their pension, when they don't want to, you should seek help / complain.

but if you were meaning, "do they tax your pension money / can it effect benefits" > the answer is yes.

...as far as i know.

regards

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf


How your pension pot (or your partner’s pension pot) is treated depends on whether you or your
partner have reached the qualifying age for Pension Credit. You can find out your qualifying age
for Pension Credit by using the GOV.UK State Pension calculator at
https://www.gov.uk/calculate-state-pension
The way in which you use the new pension flexibilities could affect any future entitlement to
benefits. This is explained below.

If you (or your partner) are under the qualifying age
for Pension Credit.


If you (or your partner) are under the qualifying age for Pension Credit, and you do not take any
money from your pension pot, then it will not be taken into account when your benefit
entitlement is worked out

Once you (or your partner) reach the qualifying age for Pension Credit, you are expected to use
your pension(s) to help support yourself.

If you had a Pension Scheme with a Normal Scheme Retirement Age for taking benefits without actuarial reduction, then you could not be required to take such a pension earlier than NSRA .

Conversely, you could not choose to defer taking the pension beyond NSRA in order to retain entitlements to benefits.

[Deleted User]

You need to be 55+ to access your private pension

Acquinas

By "forcing" you to take any frozen pension they would in effect we telling you that you are not part of the workforce and should not be seeking work. They can't do that. I've just turned 54 and have a deferred pension but and still in work. It seems likely though that I will be made redundant some time before my 55th birthday. If that happens I will certainly be seeking work again. As I understand it, any JSA is reduced £ for £ for any private pension income over £50 per week. But by taking my pension early I would be hit by an actuarial reduction. I'm not keen on that. So it will be a case of deferring the pension, signing on and looking for work.

TELLIT01

When my brother claimed Pension Credits he had to get figures from his pension provider of that amount they would pay if he took his pension at that time. That figure was then deducted (less any disallowance), from his PC payment. The fact that taking the pension early would have a serious negative effect on the amount of pension payment wasn't factored in!

xylophone

The fact that taking the pension early would have a serious negative effect on the amount of pension payment wasn't factored in!

If this were a deferred DB pension, the pension would have a Normal Scheme Pension Age.

The deferred pensioner might be able to apply for payment earlier than this, but it is likely that the rules would be such that it would be granted at the discretion of the Trustees.

Almost invariably the pension would only be paid with actuarial reduction.

I do not see how the DWP could require a person to draw his pension before NSRA when it would be to his long term financial disadvantage to do so.

If it were a case that a pension became due and payable at a certain age ( and before PC age) and the person chose to defer it, then it could certainly be taken into account as notional income.

And see the link above about pension freedom - there is certainly no suggestion that even a DC pension (which could be available from age 55 ) would be taken into account before Pension Credit Age.