Cash in a SIPP - means-tested benefits ?

deejaybee

Hi all,

If i put cash into a SIPP ( and leave it in a cash account ) - is this amount taken into account or disregarded in regards to means-tested benefits ? **

** I expect to continue working for the forseeable, and not entitled to ( or seeking ) in-work benefits, question above is something that i thought about , and obviously for a lot of us, unplanned circumstances etc we dont always know whats over the horizon...

EdGasketTheSecond

I would not have thought so as you can't access it until you are of pensionable age. I think if you do claim benefits, you have to declare that you are not in receipt of a pension, state or private.

deejaybee

Thanks Ed.

dunstonh

If i put cash into a SIPP ( and leave it in a cash account ) - is this amount taken into account or disregarded in regards to means-tested benefits ? **

If you are over the age of 60 then yes it is.   If you are not of pensionable age then no it isnt.

However, if you are not of pensionable age, leaving it in cash is completely pointless and will destroy the benefit of doing it.

deejaybee

Hi dunstonh

Whats the significance of " Age 60 "  ?   as that is not ( official ) pensionable age these days..

Albermarle

If i put cash into a SIPP ( and leave it in a cash account ) 

Once money is added to a SIPP, its status legally/tax/benefits wise is not affected by whether it is in a cash account or invested .

However from a financial investment point of view , leaving it in cash at zero return is not a good idea.

dunstonh

deejaybee said:

Hi dunstonh

Whats the significance of " Age 60 "  ?   as that is not ( official ) pensionable age these days..

In theory, they can use pensions in means-tested benefits from 55 but you typically find they do not until 60.

There is no official pensionable age.