Carers allowance and private pension

50Twuncle

Does claiming a private pension at age 55 affect carers allowance.?
I know that a state pension does...

Alice_Holt

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."

in_my_wellies

Thank you for the helpful link.
When the time comes can I defer my State Pension and continue to receive CA?

Alice_Holt

in_my_wellies wrote: »

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

in_my_wellies

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.

50Twuncle

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 ?

bluenose1

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.

50Twuncle

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 !!