New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: UPDATED MSE Coronavirus Guides

NEWSFLASH


New, free ‘Academoney’ course from MSE and the Open University launches
All the key areas of personal finance are covered, so that you can master your money decisions


Carers allowance and private pension

7 replies 778 views
50Twuncle50Twuncle Forumite
10.4K posts
Part of the Furniture 1,000 Posts Photogenic Name Dropper
✭✭✭✭✭
Does claiming a private pension at age 55 affect carers allowance.?
I know that a state pension does...
Things will get better

Replies

  • Alice_HoltAlice_Holt Forumite
    3.8K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭✭
    https://www.carersuk.org/help-and-advice/financial-support/help-with-benefits/carers-allowance
    "Occupational or personal pensions do not count as earnings and you can be paid Carer's Allowance in addition to these. ... If you do receive taxable income such as occupational or personal pensions or part-time earnings you should inform the tax office about your Carer's Allowance, because it is a taxable benefit."
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • in_my_welliesin_my_wellies Forumite
    1K posts
    Part of the Furniture 500 Posts
    ✭✭✭
    Thank you for the helpful link.
    When the time comes can I defer my State Pension and continue to receive CA?
    Love living in a village in the country side
  • Alice_HoltAlice_Holt Forumite
    3.8K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭✭
    Thank you for the helpful link.
    When the time comes can I defer my State Pension and continue to receive CA?

    I don't think that would be advantageous, as you would forgo SP for a lower amount of CA but not build up any increases in future SP payable via deferment:
    https://www.gov.uk/deferring-state-pension/extra-state-pension-and-lump-sum-payments
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • in_my_welliesin_my_wellies Forumite
    1K posts
    Part of the Furniture 500 Posts
    ✭✭✭
    Many thanks
    I had planned to defer my state pension for 2 years before I became a carer but I can see, as you say, it won't be advantageous.
    Love living in a village in the country side
  • edited 17 May 2019 at 12:13PM
    50Twuncle50Twuncle Forumite
    10.4K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    edited 17 May 2019 at 12:13PM
    Alice_Holt wrote: »
    https://www.carersuk.org/help-and-advice/financial-support/help-with-benefits/carers-allowance
    "Occupational or personal pensions do not count as earnings and you can be paid Carer's Allowance in addition to these. ... If you do receive taxable income such as occupational or personal pensions or part-time earnings you should inform the tax office about your Carer's Allowance, because it is a taxable benefit."


    Thanks - this is for my wife (aged 50) with no other income - who is planning on claiming from her private pension in 5 years time - currently claiming CA for caring for me !
    I understand that she can claim 25% of her pension tax free as a lump sum - what about subsequent years ?
    Is any income from the pension pot, treated as normal taxable income ?
    Things will get better
  • bluenose1bluenose1 Forumite
    2.3K posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    50Twuncle wrote: »
    Thanks - this is for my wife (aged 50) with no other income - who is planning on claiming from her private pension in 5 years time - currently claiming CA for caring for me !
    I understand that she can claim 25% of her pension tax free as a lump sum - what about subsequent years ?
    Is any income from the pension pot, treated as normal taxable income ?

    After she has received the tax free element of her pension the rest is taxable same as other income. Therefore she won't have to pay tax on the first £12,500.

    My DB pension allows me to claim it from 50, might be worth doing the sums to see if it is something to think about.

    I assume you have checked you are getting everything you are entitled to eg. DLA.
    Money SPENDING Expert

  • 50Twuncle50Twuncle Forumite
    10.4K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    bluenose1 wrote: »
    After she has received the tax free element of her pension the rest is taxable same as other income. Therefore she won't have to pay tax on the first £12,500.

    My DB pension allows me to claim it from 50, might be worth doing the sums to see if it is something to think about.

    I assume you have checked you are getting .everything you are entitled to eg. DLA.
    Yes thanks - I am receiving DLA but am waiting on PIP application through the post !!
    Considering applying for a transfer - since I have deteriorated considerably in the 15 years that I have been on DLA for and no signs of PIP !!
    Things will get better
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support