Universal Credit and SIPP

throughtheblue

Galloglass said:

Understand your point @calcotti but was just pushing the OP towards a bit of clarity on the points you've raised about it possibly being a portfolio.

Sorry, I'm not overly clear as it's not my SIPP. A few years ago my Mum became aware of a pension she had working in her late teens. I believe she transferred pension into a SIPP, which she manages through a stockbroker. When she turned 55 she took 25% tax free, but faces fees + tax on other drawdowns, so I presume that it would still be covered under personal pensions. 

calcotti

throughtheblue said:

Galloglass said:

Understand your point @calcotti but was just pushing the OP towards a bit of clarity on the points you've raised about it possibly being a portfolio.

Sorry, I'm not overly clear as it's not my SIPP. A few years ago my Mum became aware of a pension she had working in her late teens. I believe she transferred pension into a SIPP, which she manages through a stockbroker. When she turned 55 she took 25% tax free, but faces fees + tax on other drawdowns, so I presume that it would still be covered under personal pensions. 

That seems likely, in which case it will be ignored as capital.

[Deleted User]

Number one ignore any debt they aren't interested in that, as for the SIPP my take on that is that once you have accessed some of it then they expect you to access the rest or they will count it as capital, pension freedoms and benefits have become some what a minefield and if OP you think i'm wrong you could ask on the MSE pensions forum for advice.
Just to add if you don't access a SIPP or private pension they can't force you to do that until you reach SR age, but if you do make a draw down then it counts.

calcotti

venison said:

Number one ignore any debt they aren't interested in that, as for the SIPP my take on that is that once you have accessed some of it then they expect you to access the rest or they will count it as capital,.

That is not correct. Regular withdrawals or ad hoc withdrawals can be made at will and must be declared (and will be treated as unearned income and capital respectively) but any untouched pension funds continue to be disregarded.

When claimant reaches pension age notional income rules are applied, the fund itself continues to be disregarded.

Pension funds are never treated as capital (as stated in the guidance quoted in post 4 of this thread).

[Deleted User]

I was going off advice I was recently given.

calcotti

venison said:

I was going off advice I was recently given.

Obviously I could be wrong but what I have stated is my understanding of what is said in the ADM. Where was your advice from?

calcotti

Just found this guide https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs91_pension_freedom_and_benefits_fcs.pdf
(AgeUK’s factsheets are always excellent.)

NedS

calcotti said:

venison said:

I was going off advice I was recently given.

Obviously I could be wrong but what I have stated is my understanding of what is said in the ADM. Where was your advice from?

@calcotti you are correct