Income support and Pension Pot becoming available over 55

newtothis999

I wondered if anyone could help.

I am currently a carer for my husband whose has mental health issues. I also am physically disabled. We claim income support as we currently are unable to work.

However my husband was paying into a pension plan until he was taken ill a few years ago. When he took out the pension he was rather optimistic and thought that he would be able to retire at 55! So basically the pension pot will become available in June 2017.

As we are claiming income support will he be forced to buy an annuity? His projected annual earnings from this would be approx £1500. I know the rules have changed and you can now draw down from the pension pot without having to buy an annuity. We would have liked to be able to draw it down to pay off some of our mortgage.

Is anyone able to shed light on this. The quesion once again is will he be forced to buy an annuity

Londonsu

Have a look at this link it will give you more information
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

TELLIT01

The rules may have changed so it's certainly worth reading the information in Londonsu's link.
Even worst case scenario with IS wouldn't force him to actually take the pension now but IS could be reduced on the basis of the pension he is entitled to take at this time. The obvious advantage of leaving the pension untouched is that it continues to grow.

newtothis999

Thank you.

We were thinking of leaving it to build up some more as interest rates have been so low for so long that the fund hasn't build up half as much as expected!

I know I will have to let the DWP know but needed to prepare myself for the worst scenario.

Xbigman

You will not be forced to take money from a pension pot until one of you meets the qualifying age for pension credit. Its only when you try to get extra pension money out of the Govt that they expect you take take any pension you have. You don't give your age but in your husbands case this will be 66 or 67.

If you don't take any money from his pension you don't need to tell the DWP anything, even at 55.
If you do draw down money to pay off the mortgage be careful as this could fall foul of deprivation of assets rules and would be declarable. I'd be inclined to leave it alone until state pension age.



Darren

newtothis999

Thanks Darren I appreciate the advice