Universal Credits

Smokey777

Can I still claim universal credits re unemployment due to illness despite the fact the I can access my personal pension ie I am over 56 years old ? 

ffacoffipawb

Smokey777 said:

Can I still claim universal credits re unemployment due to illness despite the fact the I can access my personal pension ie I am over 56 years old ? 

I believe so, yes.

Subject to having savings under £16,000.

NedS

Smokey777 said:

Can I still claim universal credits re unemployment due to illness despite the fact the I can access my personal pension ie I am over 56 years old ? 

Yes. You are only required to take it (or will be treated as if you have taken it if you choose to defer) at the normal scheme retirement age for DB pensions, and State Pension Age for DC pensions. Until that point, pension assets are disregarded in full.
Any pension income you do take will be treated as income (and deducted pound for pound) for regular payments, and as capital for irregular/one off lump sum payments, and must be declared.

Smokey777

So to be clear if I take my tax free allowance from my personal pension this year, I am still allowed to claim UCS. I am only getting £409 per month so not really much to live on and my pension could top this up if I choose to take it.

NottinghamKnight

Might be best checking on the benefits board.

p00hsticks

Smokey777 said:

So to be clear if I take my tax free allowance from my personal pension this year, I am still allowed to claim UCS. I am only getting £409 per month so not really much to live on and my pension could top this up if I choose to take it.

As Nottinghamknight says, best to check with the experts over on the benefits board.

My non-expert understanding is that though you are not required to take any of your pension prior to the normal retirement day, if you do then it will be treated as income and aversely affect any means tested benefits. 

NedS

Smokey777 said:

So to be clear if I take my tax free allowance from my personal pension this year, I am still allowed to claim UCS. I am only getting £409 per month so not really much to live on and my pension could top this up if I choose to take it.

If you take the tax free allowance as a lump sum, this will be treated as capital by UC, and you will have to notify them. If you have capital of more than £6k after taking the lump sum then it will reduce the amount of UC you receive. If your capital exceeds £16k your UC claim will close and you will not be eligible to claim.

If you take an income (regular payments) from your pension, this will be treated as income and will be deducted from your UC pound for pound in the months in which you take it.