private pension - universal credit

sanova76

Hi,

I'm just wondering. If you have private pension, does it consider as your savings?

I know if you have more than £6000 in savings it'll affect your universal credit.


Thanks.

San

poppy12345

sanova76 wrote: »

Hi,

I'm just wondering. If you have private pension, does it consider as your savings?

I know if you have more than £6000 in savings it'll affect your universal credit.


Thanks.

San

It's classed as income and will be deducted £1 for £1 from any UC entitlement.

calcotti

sanova76 wrote: »

Hi, I'm just wondering. If you have private pension, does it consider as your savings?

I know if you have more than £6000 in savings it'll affect your universal credit.

Thanks. San

Your question is not clear.
If you are receiving income from your private pension it is classed as unearned income and deducted in full from your UC entitlement, as poppy says.
If you are referring to a pension fund it is ignored until such time as you reach state pension age.
From state pension age you will be treated as having an income from the pension fund even if you choose not to take one.

sanova76

Sorry,

I'm 43, nowhere near pension age. I'm also not familiar how private pension works. I don't have one at the moment. As far as I'm aware you won't be able to cash in until you're 55? So if I have £6000 in my private pension fund (for example) does it count as savings?

Thanks.

calcotti

sanova76 wrote: »

So if I have £6000 in my private pension fund (for example) does it count as savings?

Thanks.

No, as explained in my previous post money in a pension fund is ignored while you are below state pension age.

leviathan

Another hypothetical.


One cannot simply quit work and then claim benefits.
But if one were to retire at 55 what then? Are you allowed to claim if your income is low?
Could you choose a drawdown and then choose not to take anything out of the fund yet claim to be retired?


What is the definition of retirement as far as UC is concerned ? state age?

calcotti

If you were 55 and on a low income you could claim UC. If you were drawing a pension it would be deducted in full from the UC. However receiving a pension does not make a claimant ‘retired’. Anybody of working age (below state Pension age) claiming UC is expected to look for work unless they have LCW, are a carer or are otherwise exempt.