Affects to benefits

davesd1

I'm currently in receipt of child benefit,tax credits and housing benefit as I am a full time carer.I've recently been informed that I have £37,000 in a pension fund after the company traced me after a number of years losing touch.
I'm 59 and would like to access some of this money,but it's an absolute minefield looking at the ways it can affect benefits etc.
Could anyone offer some advice regarding the above as I've read about income deprivation.
If I wait until retirement age i'll get around £15pw from this fund.

Alice_Holt

I don't understand why the pension fund decreases between now and your SPA.
That really doesn't seem right.
Try Pension Wise - https://www.pensionwise.gov.uk/en?gclid=Cj0KCQiA2snUBRDfARIsAIGfpqEUPnsucODrdNDv8ydybiSVvXQlCH1hdlnHKPc9aJh0e3slAYV9bs8aAtwNEALw_wcB

Housing Benefit is means tested, so will stop if you extract money from your pension.

xylophone

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

Danday

It all depends on the scheme. In most cases a management charge is levied normally once a year. Some schemes have this charge set so high that it not only wipes out any income on the investment fund but actually starts to eat into the capital fund itself. This only happens when the fund is dormant. I have an old one with the Norwich Union from years ago which I could have claimed 10 years ago at age 60. The amount that I could get as a pension was pitiful. Something in the region of about £2 a week. I decided to leave it there hoping for some further growth but not putting anything in to it. Checked last year and the total fund itself was just over 50% of what it was in 2007. When I questioned this I was told that money every month was being taken out in fees. It is still there expecting it to be zero in another 9 years.

[Deleted User]

After the age of 55 if its a defined cont. pension as opposed to a defined benefits pension you can take 25% tax free so in your case £9.250. That shouldn't have a massive effect on your benefits if you only get the 3 you say, it may mean less HB. The remaining 75% can be accessed at anytime but you will pay tax on this. Some pension funds may require you to transfer the pot to a SIPP in order to access them.
If you want further help on the pension (not the benefits) aspect of this MSE has a brilliant pension forum ..http://forums.moneysavingexpert.com/forumdisplay.php?f=19

Xbigman

Where did you get £15 a week from? If you shopped around for a decent annuity you should get around £28 per week. Or £21 per week and a £9k lump sum. With the full flat rate state pension being £159 a week that is worth having.

Darren