Means tested pension

RED_KEN

Can you pay into a Pension if you are on means tested benefits without the pension pot being classed as savings.

[Deleted User]

I don't see why not as at the earliest you would have to be 55 to access the money, that is changing to your state retirement age less 10 years.
I suppose many people might ask how someone on benefits could afford to pay anything into a pension though.

xylophone

You cannot access a pension until you reach a certain age, currently 55 (except in certain restricted circumstances).



However, see this regarding accessing a pension and MTB.

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

RED_KEN

Thanks for the reply,truly no offence but I just knew the first reply would be along the lines of how can someone on benefits afford to pay anything into a pension. Fact, the someone is living at home being cared for by aged parents.So no holidays for all three of us for more than ten years. Does not leave the house on her own.spends nothing on drink, meals out trips to the cinema etc. Spends next to nothing on clothes. But if you have savings of more than £6000 your means tested benefit is reduced. She is worried sick what will happen to her when we are no longer able to look after her, so is saving as much as she can for the future. So the nice people at the benefits office say you must be on the fiddle to have saved more than nothing. You must be working , you must be running a business, you must have a friend who is giving you money? And yes I think they did mean what you may be thinking. Why should even people on benefits not be able to save without being accused of fraud or worse. To be able to put something into a pension and not have it count as savings just might help some. Although the nice people at the benefits office wont see it that way will they. Rant Over.

BorisThomson

Apologies for venison's uncalled for comment RED KEN, entirely inappropriate not least given that they are a board guide.

Merry Christmas to you and your family.

xylophone

Re tax relief on pension contributions

http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes