Investing monthly pension question

NPJ

Due to a heart condition, I've been in receipt of Universal Credit including the limited capability for work supplement for almost 18 months.. As I've recently turned 60 years of age, I have now began to receive a pension from a previous employer's pension scheme.  This is £1,397.62 annually, paid monthly.  I hope to return to work at some point, but this could be some time off yet.  As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.  I'm curious as to whether there exists some kind of account that I can get this paid into every month and be unable to make any withdrawals for a term of five years (or preferably seven), so that I have access to the money when I actually do retire.  

dunstonh

I'm curious as to whether there exists some kind of account that I can get this paid into every month and be unable to make any withdrawals for a term of five years (or preferably seven), so that I have access to the money when I actually do retire.  

You could put it back into a pension.

GunJack

NPJ said:

Due to a heart condition, I've been in receipt of Universal Credit including the limited capability for work supplement for almost 18 months.. As I've recently turned 60 years of age, I have now began to receive a pension from a previous employer's pension scheme.  This is £1,397.62 annually, paid monthly.  I hope to return to work at some point, but this could be some time off yet.  As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.  I'm curious as to whether there exists some kind of account that I can get this paid into every month and be unable to make any withdrawals for a term of five years (or preferably seven), so that I have access to the money when I actually do retire.  

Are you sure you will get reduced UC if you're in the Limited Capability group? Look for details on the the Work Allowance, you can earn £500-odd before it affects the UC, might be different if it's pension income, but worth checking...

https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances  as a starting point...

NedS

GunJack said:

NPJ said:

Due to a heart condition, I've been in receipt of Universal Credit including the limited capability for work supplement for almost 18 months.. As I've recently turned 60 years of age, I have now began to receive a pension from a previous employer's pension scheme.  This is £1,397.62 annually, paid monthly.  I hope to return to work at some point, but this could be some time off yet.  As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.  I'm curious as to whether there exists some kind of account that I can get this paid into every month and be unable to make any withdrawals for a term of five years (or preferably seven), so that I have access to the money when I actually do retire.  

Are you sure you will get reduced UC if you're in the Limited Capability group? Look for details on the the Work Allowance, you can earn £500-odd before it affects the UC, might be different if it's pension income, but worth checking...

https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances  as a starting point...

The work allowance only applies to earned income, not pension income.

The OP will need to notify UC that they now have pension income, and the gross amount will be deducted in full each month from their UC award.

QrizB

NPJ said:

As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.

What makes you think you'll need the money when you retire but not now?

Put another way, you're currently receiving UC but it will be reduced by £116 a month when your pension goes into payment. Do you currently have £116 a month spare, that you could be saving? If so, where are you saving it and can you save the pension in the same place? If not, what will you giving up so you can save your pension?

NPJ

QrizB said:

NPJ said:

As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.

What makes you think you'll need the money when you retire but not now?

Put another way, you're currently receiving UC but it will be reduced by £116 a month when your pension goes into payment. Do you currently have £116 a month spare, that you could be saving? If so, where are you saving it and can you save the pension in the same place? If not, what will you giving up so you can save your pension?

I wouldn't be giving anything up if such an account existed and the pension was paid into that, making the funds unavailable to me for a fixed term.  That is of course if doing so would be legal and within DWP rules.  

Alice_Holt

NPJ said:

QrizB said:

NPJ said:

As things stand, the £116 monthly pension will be deducted each month from my universal credit payments as it is paid into my current account.

What makes you think you'll need the money when you retire but not now?

Put another way, you're currently receiving UC but it will be reduced by £116 a month when your pension goes into payment. Do you currently have £116 a month spare, that you could be saving? If so, where are you saving it and can you save the pension in the same place? If not, what will you giving up so you can save your pension?

I wouldn't be giving anything up if such an account existed and the pension was paid into that, making the funds unavailable to me for a fixed term.  That is of course if doing so would be legal and within DWP rules.  

        Wherever account you paid the pension income into, it would still be treated as unearned income by UC and deducted £ for £.  Regardless of whether the account was accessible or not.

   Are you in receipt of PIP?
   If not would you be eligible:
  https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/

   Plus Council Tax support from your LA ?