Where's the best place for free pension advice?

sparkiemalarkie

Hi, my friend wants some advice on how best to take her 3 small pensions and I have no idea what to say

She is due her state pension in May but was due 2 small teaching pensions when she turned 60 five years ago.(she has not touched these as she didn't know that she had them)

She has one other small pension.

She is on benefits and is worried about getting less money than she is now and the tax implications.

I can't help her as my knowledge is very limited-
Is there an organisation that can help her sort this out, for free?

tia

sparkie

sandsy

The Pensions Advisory Service may be able to help:

https://www.pensionsadvisoryservice.org.uk/

DairyQueen

She will need to report the pensions to the benefits people once she reaches pension credit qualifying age. From that point her pensions will be included in the means-test for benefits regardless of whether she defers or takes any tax free cash.
https://www.pensionwise.gov.uk/en/benefits

A single person will be topped-up to (currently) £163 per week if their income from all sources is below that amount:
https://www.gov.uk/pension-credit
https://www.gov.uk/pension-credit/eligibility

Note: 'If you’re entitled to a private or workplace pension, the amount you’d expect to get is calculated as income from the date you were able to get it, if you had claimed it.' This seems to indicate that her failure to claim her occupational pensions when they fell due could be an issue. She should definitely tell the benefits folk about these pronto and explain that she was unaware that they existed.

If entitled to pension credit then she will also be entitled to other benefits:
https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-council-tax-council-tax-reduction/how-your-council-tax-reduction-is-worked-out/council-tax-reduction-how-your-capital-is-worked-out-if-you-re-a-pensioner/

Marcon

She needs to report the two teaching pensions now if they were payable at 60. The fact she didn't know about them doesn't mean that they won't be taken into account for some means tested benefits at the age they first became payable.

Silvertabby

Marcon wrote: »

She needs to report the two teaching pensions now if they were payable at 60. The fact she didn't know about them doesn't mean that they won't be taken into account for some means tested benefits at the age they first became payable.

Marcon is right. I've seen this happen with deferred LGPS pensioners, who wouldn't take their benefits because they were claiming more in means tested benefits.

DWP will find out about her teaching pensions when she reaches State pension age (65?) - and I suspect that these 2 'small' pensions, as they are TPS and fully index linked, may well be worth more than she thinks.

xylophone

The pensions became available to her without actuarial reduction at scheme pension age.

She should have advised whoever is responsible for paying her benefits at that time.


She needs to get all the information about the teaching pensions and the small pension together and advise the benefits people now.

She can get a state pension forecast here

https://www.gov.uk/check-state-pension

Have TPS been in touch with her about her pensions?

From booklet "Deferred member- your guide to your pension"

Once you reach your Normal Pension Age (NPA)
and provided you are out of service you should
claim your benefits. If you continue in pensionable
service after you reach your Normal Pension Age
your benefits will be paid from the last day of
pensionable service. If you delay making your
claim then your benefits will be backdated to your
last day of service or when you reached your NPA,
whichever is the later. Any backdated payments will
be paid as a lump sum and will be subject to tax.

sparkiemalarkie

Thank you so much for the help and advice.


I don't know the details of how she found out about the pensions or how much they are worth.
It wasn't deferred deliberately.


I will let her know that she needs to inform the benefits people immediately and hope that they can help her to get it sorted.


sparkie