Can I claim Job seekers allowance following VR at 55 if I defer taking my pension?

itsmeagain

Malthusian said:

DairyQueen said:

Are you serious?

Why wouldn't they be? Pensions are to provide for retirement, not periods of unemployment in working life. And the OP is at the latter stage. That's why they are, er, exempt from means testing - until you have reached retirement age.

The Government does not want people to give up on work 13 years early, paying less tax, claiming more means tested benefits and suffering a severely straitened lifestyle, because they were made redundant at 55 and are forced to claim their pension.

That's exactly what I'm thinking (whilst my butler is serving me cocktails on my yacht in Monaco)

barnstar2077

I wouldn't bother either. It has been a very long time since i needed it, but at the time it was peanuts.  Personally I wouldn't claim a benefit I don't need anyway.

itsmeagain

JoeCrystal said:

Umm, yes to your latter question. I looked forward to the day when they introduce means-testing like the Australian style. 

Arguably, the people that do not 'need' the state pension (and some other benefits), are the people most 'entitled' to it, because they have paid the most money in to support it.

NedS

itsmeagain said:

pjread said:

I think if it was non-voluntary redundancy and a genuine intent/desire not to retire yet, the flames might be a touch lower....

I suspect even then, there wouldn't be much on the table (unless you can e.g. bung that 60k into the pension so it 'doesn't exist'...)

I didn't want VR but was threatened with CR (with unknown terms) if I didn't take VR.
What's the relevance in the £60k? I thought JSA was not means tested? I will be putting £30K in my pension.

Yes, you can claim jobseekers allowance as long as you are actively looking for work. How many jobs have you applied for since learning of your redundancy? There is a massive shortage of staff available for jobs in hospitality at the moment as the industry reopens from Covid, and the jobcentre has loads of schemes running at present to help people back into work quickly so I very much doubt you'll be unemployed and claiming for long. Best of luck getting another job.

FaceHead

So it sounds like the OP will be eligible* for 6 months JSA @ £74.40 per week. That's over £1,900. The OP should definitely claim what they're entitled to, as £1,900 will matter to them.  Pay what you must and claim what you can: That's the basis of the tax and benefits system.


* If genuinely looking for work. OP - do you actually intend to look for work? If not, then claiming JSA whilst not looking for work wouldn't be right, would it? 

Malthusian

Pay what you must and claim what you can: That's the basis of the tax and benefits system.

But another pillar of the benefit system is "make benefits as hard to claim as possible so that only people who really need it apply". The State Pension is an exception to the rule but JSA certainly isn't.
In the OP's position I would live off my redundancy money until I found another job (which is after all what it's for), or retire, but if they want to jump through the hoops for £1,900 it's a free country.

bluenose1

I would claim the JSA if entitled as well. Not sure with so many staff  WFH you would even  have to go into Job Centre or if it would all be virtual. 
It is non means tested so no reason why not to, never know you may get a nice stress free part time job out of it. Good luck. 

Bravepants

JSA is not means tested.

Check this page for indication of eligibility..

https://www.gov.uk/jobseekers-allowance/eligibility

I believe it's worth around £73 a week at the moment, so well worth having to pay for interview travel costs etc.

DairyQueen

itsmeagain said:

DairyQueen said:

Are you serious?

If so, the Benefits board may be a better place to seek information (but take a crash helmet and be prepared to duck).

Why wouldn't I claim if I was entitled to do so?
I didn't want VR but was threatened with CR (with unknown terms) if I didn't take VR.
I've paid tax & NI since 16 without claiming anything.
I would still be working for the next 6 months if I hadn't been pushed.

Are you suggesting that a person that has lost their job and could afford to live without benefit entitlement shouldn't take entitlement?

I am, but that's a moral/ethical position and bears no relationship to what you can/cannot claim.

It's not often that the Pensions board sees those with an (accessible) generous, gold-plated, DB scheme request info. on welfare benefits.

Some consider the welfare system as a safety net for those suffering real hardship. Others see it as 'entitlements'. Others hold different views.

Your posts suggest that you are not seeking work but are seeking support from taxpayers to pay your bills 'for the next 6 months' rather than use your own substantial resources. If you are seeking work then you are 'entitled' to JSA. If you are not, then you are not 'entitled' and claiming it would be fraudulent. The clue is in the title of the benefit.

Generally (more info available on the Benefits board):
Assessment for means-tested benefits takes into account income and savings outside of a pension (unless you have reached scheme retirement or pension credit qualification age ) and 50% of your pension contributions. It excludes employer pension contributions. The information you have provided suggests that you are not 'entitled' to any means-tested benefit.

Have you considered your position from a different perspective?

Mr DQ was 58 when he was made redundant. He was devastated. He also had a generous DB but no plans to retire early and wanted to continue working.

He contracted for a year and then set-up a consultancy business. He has been gainfully and productively employed ever since (yes, even throughout the pandemic). He wishes he had jumped before he was pushed as this has been the happiest period of his entire career.  He is now 64 and will retire at the end of this year.

That is one option for those who have a lifetime of experience in their field. Other possibilities :
- work part-time (several industries have labour shortages)
- become self-employed. Do you have a hobby that you could convert to cash? Gardening? DIY? Sell on eBay, car boots, etc.
- AirBnB.

Unlike a DC/SIPP,  taxable DB income does not trigger the MPAA (Money Purchase Annual Allowance limit of £4kp.a. in pension contributions). If you have sufficient relevant earnings in addition to your DB in payment then it's possible to receive tax relief on your entire DB income via pension contributions.

Have you checked your state pension forecast? Despite 40 years of NI, it's possible that you have not yet reached the maximum (given that you have been a long-standing member of a DB scheme, and that scheme would have been 'contracted-out' of SERPS/S2P prior to 2016). If you have yet to hit the maximum then making-up the difference (via employment, self-employment or voluntary contributions) is a great investment.

Do you have a spouse? What is his/her pension situation? It's possible that some of your redundancy payment could be channeled into spouse's pension. This is often tax efficient.

If you do not intend to work again then forum members will be able to provide all kinds of pointers/information on the best way to maximise your income/investments. You will need to provide more detail on your retirement aims/income requirement/savings/etc. to make the best of their experience and expertise.

itsmeagain

Thanks all. So, it appears from what's been said, putting morals & opinions to one side, there's nothing stopping me claiming JSA for up to 6 months.
I have also been recently diagnosed with frozen shoulder. I struggle to drive for any distance, lift, reach up etc. Will this affect anything associated with what I can claim and be an accepted limitation on what jobs I can reasonably be expected to apply for / accept?