Paying into a Pension whilst on ESA

Charliebrown68

Can I pay into one?

What are the advantages over saving money?


CB

badmemory

Very briefly as I am sure someone who knows better than me will be along shortly.

It doesn't count when your benefits become income based rather than contribution based. If you have debts no-one can't get at the money but then neither can you until you are (at present this is expected to increase to 57, 58) 55. If you have no earned income you can pay in £2880 & the nice tax man gives your pension £720. Also it normally then increases in value year after year. Normally as in most years.

Savings with the current pathetic interest rates means the value of those savings is decreasing, if your benefits become income based then those benefits are reduced on the assumption that the interest you receive annually is something like 10%. (£1 per week deduction for every £500 over the limit so assuming £52 interest pa - I wish).

So on both the negative & positive side - you can't touch it.