Private pension 11 January at 1:41PM in Benefits & tax credits 9 replies 356 views

Tushea66

I have a private pension which I took out last year at 55 but I can't keep up with daily costs, my rent has it increased to 775 a month with electric costs in with it, but by time I pay council tax and car costs I am left with £5 out of 1200 also been told not entitled to universal credit
Can someone advise me 

calcotti

If you have any pension income that is deducted in full from any UC entitlement. Drawing a regular pension while working age if you might otherwise be eligible for benefits is generally not financially beneficial unless the pension income is higher than any possible benefit entitlement.

Is there any reason why you are unable to work or is it a choice?

HillStreetBlues

calcotti said:

Is there any reason why you are unable to work or is it a choice?

I don't think the OP states that their not working (although I do miss stuff).

calcotti

HillStreetBlues said:

calcotti said:

Is there any reason why you are unable to work or is it a choice?

I don't think the OP states that their not working (although I do miss stuff).

You're right - they didn't say that. I made an inference which may be incorrect.
OP has provided very little information to work with!

TELLIT01

I thought the OP meant they have started paying in to a private pension, not drawing down on it.  If that is correct, presumably they could either stop contributions or reduce them.  They need to speak to the pension provider.

calcotti

TELLIT01 said:

I thought the OP meant they have started paying in to a private pension, not drawing down on it. 

I interpreted, because of the reference to age 55, as drawing down. But again we're not being given much information to work with.

sheramber

Minimum wage for over 25 years would be £19,760

OP says income is £1200- presumably a month so cannot be working full time, if at all

Grumpy_chap

TELLIT01 said:

I thought the OP meant they have started paying in to a private pension,

That is how I read the OP.
It could just as equally be read as Calcotti has.

Very little information and more required
If it is paying into a pension, the contributions could probably be suspended.
If it is drawing the pension, need to confirm tax codes reflect the pension as only income (if that is the case).
If drawing the pension on flexible draw-down, presumably could stop drawing the pension while that income is only achieving ineligibility for UC.  I am not 100% on this, but believe it to be so.

Tushea66 said:

I have a private pension which I took out last year at 55 but I can't keep up with daily costs, my rent has it increased to 775 a month with electric costs in with it, but by time I pay council tax and car costs I am left with £5 out of 1200 also been told not entitled to universal credit
Can someone advise me 

HillStreetBlues

sheramber said:

Minimum wage for over 25 years would be £19,760

OP says income is £1200- presumably a month so cannot be working full time, if at all

Will depend what is classed as "full time"  9 to 5  with an hours unpaid break  35 hours PW so £17290
Take off Tax & NI off  if the OP private pension they took out is about  10%   that would leave about £1200

So depends on how they are classing the £1200,   is it before or after deductions.

calcotti

This thread has us speculating about the OP's circumstances. Perhaps it's only worth continuing if OP returns to provide ore information.