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Do i have to take my pension down early

Help please...?
My husband and I are unemployed. My husband is now 64 and we were told he may be eligible for pension credit. I have a flexible private pension. Will this pension be classed as usable income for any benefits claimed? In other words will I have to draw this down early? I am 57 and want to leave the pension as long as possible.

Thank you

Comments

  • No you don't have to take it early for JSA or ESA but if you take irregular payments from it these will be classed as capital so may effect means tested benefits. On PC would assume the same perhaps get some advice from welfare rights
  • Xbigman
    Xbigman Posts: 3,906 Forumite
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    For ESA and JSA you don't need to take it but for pension credit you do. Otherwise you are claiming a pension benefit whilst sitting on untaken pension income. This is a complicated situation. Is this a joint claim or are you claiming individually? And what are your current state pension entitlements?




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  • When your husband reaches the age that a woman born on the same day as him would be able to claim her pension then, as you are over 55, you will be expected to use your pension to help support you both. The amount of income you would get if you bought an annuity will be used to determine how much income will be taken into account. Note you do not have to actually buy an annuity (which would likely be poor value). You can choose to simply draw down the appropriate amount.

    When your husband gets his state pension - which should not be too much later as the ages are converging - then you may not need pension credit at all. If you do, the calculations will be the same with your assumed pension income being added to his state pension amount. Note if you are in a universal credit area then you will probably both be expected to claim UC rather than pension credit, and the payable amounts are rather less generous than for pension credit.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    And have you and your husband obtained state pension forecasts?

    https://www.gov.uk/check-state-pension
  • Thank you for taking the time. It would be my husband claiming. He is entitled to pension at 65. I'm not due for a few years yet as I am 57.

    It is very frustrating as the only regular income is £4,500 per annum from a private pension he had contributed to at work.

    He did have JSA for six months. I claimed JSA on redundancy but because I had only earned £90 a week I was told I had not earned enough in the previous two years to claim!!!

    We have always worked. ..the only claim being the 6 months JSA. I rightly or wrongly feel frustrated that we have to pull down my private work pension early to survive. But I don't know what else we can do unless either of us secure a job. Now our 'earnings' appear on paper higher than they truthfully are because of drawing down pension to survive.

    Any help will be so appreciated

    Karen
  • Sorry ...yes we have been advised we are due the full pension when we are eligible due to the years we have worked.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Have you read through the whole of the Age Concern Link and the DWP Guidance?

    You are a mixed age couple. Your husband has reached PC age? See chart in Age Concern link.

    Your husband would claim for you both - he is already drawing his own private pension but this would appear to be only around £87 a week.

    The standard minimum guarantee Pension Credit for a couple is a little over £243 a week.

    I note that in the link there is this:-

    Deprivation of income (notional income)

    You can be treated as having income that you do not actually have. This
    is known as ‘notional income’. This can happen if you fail to apply for
    income you are entitled to, for example, you have not claimed your State
    Pension, occupational or private pension, or you have deliberately got rid
    of income with the intention of increasing your benefit entitlement. You
    should seek further advice if this applies to you.

    If you are a couple where one person is under PC age, notional income
    will not apply to any occupational or private pension they have yet to
    claim.


    You should check with DWP. The AC Guide says


    If you want help with your calculation, call the Pension Credit Helpline on
    0800 99 1234 or contact a local advice agency. There is an online PC
    calculator on the Gov.uk website https://www.gov.uk/pension-credit-calculator
    and a general benefit calculator on the Age UK website.
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