25% pension 24 January 2022 at 10:26AM in Child support 2 replies 366 views

StuartU

If I took my 25% tax free pension now (57yo)does it affect my Child Maintenance payments e.g will they go up?

TBagpuss

Maintenance is normally based on income, not capital, so taking a lump sum is unlikely to affect child support but if you start to draw your pension as well that may do so,. 

Clearchem

Depends on the value of the lump sum. It comes from income not assessed for child maintenance as pensions are rightly exempt, as they are not for your children they are for you, and would always reduce available money for the children, resident parent or not.

If the lump sum is over 31250 the receiving parent can request a variation to assess the sum for 8% notional income against which their usual % 12 16 or 20 would be due.

If you draw the pension it is now income and will be assessed for cms.

So yes your cms payment could go up.