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Pension lump sum
grinchy12
Posts: 3 Newbie
Hi , can anyone tell me if the lump sum from an Occupational pension is taken as capital and disregarded for Universal credit? It is under £6000 and I know they will take the monthly amount off my UC £ for £. Thanks
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Comments
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Hi , can anyone tell me if the lump sum from an Occupational pension is taken as capital and disregarded for Universal credit? It is under £6000 and I know they will take the monthly amount off my UC £ for £. Thanks
A lump sum from an occupational pension is not disregarded and is treated as capital with a monthly yield (i.e treated as income) each month.
You can have £5999 in capital but anything above that is treated as your getting a 'yield' from it and will reduce your UC accordingly.
See Appendix 1 for the assumed yields:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/618960/admh1.pdf
Have you taken advice about taking this lump sum?0 -
Have you taken advice about taking this lump sum?
He might not have a choice.
Some occupational pensions pay an automatic lump sum at retirement.0
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