Drawdown Pensions and Benefits

Stav1962

Hello, I'm a 60 year old male with a 57 year old spouse who has health issues (no claims at present).I took my Pension early at 55 and moved to Spain, we survived modestly on a drawdown of 18;000 euros per annum from my drawdown. However on 27/02/2021 we returned to the UK for good ( family) The cost of living over here is so much higher and we've had to take more and more from the Pension (my spouse has no income or benefits) at the present rate my pot will disappear before I receive my state pension, I have gone back to work part time, as I have to care for my wife. Is it right that I have to drain all my pension to survive, or can I get state help. Stav

Andy_L

https://www.entitledto.co.uk/

mark5

From what your saying you probably started drawing down your pot to early but you probably know that now. 

If you have decent earnings potential I would be thinking of working full time up to state pension age and giving whats left in the pension time to grow again.

Depending on your partner’s condition and your earnings you might qualify for carers allowance but your earnings allowance would be very low. 

Have a look on entitledto.co.uk

dunstonh

Is it right that I have to drain all my pension to survive, or can I get state help. 

You may be able to qualify for benefits but do remember that the rate you have drawn the pension may be held against you.    This is to prevent people drawing too much from their pension, too quickly and then hoping the taxpayer will bail them out.

The means test allows for the money taken out under drawdown to be measured against the notional income you would have got and if there is a sufficient difference, they can use the notional figure as if you are still getting it and reduce your benefits accordingly.

 we survived modestly on a drawdown of 18;000 euros per annum from my drawdown.

That would have needed a pension fund in the ballpark of about 500,000 euros to be sustainable using drawdown.    By the sounds of it, you were nowhere near that.   So, whilst you may get some benefits, you need to be prepared from them to consider that you have drawn too much, too quickly.

Linton

I suggest you ask your question in the Benefits forum where you should find more appropriate expertise..

calcotti

You are no obligation to draw down on any pension funds and all money in authorised pension pots is ignored when assessed for means tested benefits. If you are drawing any pension that pension income will be deducted in full from the means tested benefits. In general if you are on a low income it is foolish to draw down pension income prior to reaching pension age.

If your wife has health conditions that limit her ability to carry out specified activities she can apply for PIP now that she has been in Great Britain for two years (assuming she is a UK citizens and below pension age).
https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/

Use a benefits calculated such as https://www.turn2us.org.uk/ to see if you are entitled to any Universal Credit. You both have to claim and your payment, if any, will be based on your joint finances.

https://www.citizensadvice.org.uk/benefits/universal-credit/

If she gets a Fit Note from her GP and declares a health condition that affects her ability to work she will, after 29 days, be referred for a Work Capability Assessment. If found to have Limited Capability for Work and Work Related Activity that would increase your UC entitlement. 

If she is awarded PIP including Daily Living you will be entitled to be treated as a carer which would also increase the UC entitlement.

Albermarle

calcotti said:

You are no obligation to draw down on any pension funds and all money in authorised pension pots is ignored when assessed for means tested benefits. If you are drawing any pension that pension income will be deducted in full from the means tested benefits. In general if you are on a low income it is foolish to draw down pension income prior to reaching pension age.

I thought if you had a pension pot you were not drawing from, then when calculating benefits, the DWP had a formula for calculating a theoretical pension income you could be drawing , based on annuity rates etc ?
Or does that only apply when you are older, state pension age for example ?

calcotti

Albermarle said:

I thought if you had a pension pot you were not drawing from, then when calculating benefits, the DWP had a formula for calculating a theoretical pension income you could be drawing , based on annuity rates etc ?
Or does that only apply when you are older, state pension age for example ?

Only if you are over pension age. The government do not want pension funds held in authorised schemes used while below pension age.

Linton

calcotti said:

Albermarle said:

I thought if you had a pension pot you were not drawing from, then when calculating benefits, the DWP had a formula for calculating a theoretical pension income you could be drawing , based on annuity rates etc ?
Or does that only apply when you are older, state pension age for example ?

Only if you are over pension age. The government do want pension funds held in authorised schemes used while below pension age.

Is there a NOT missing?  Surely the government dont want to force people to access pensions early.

calcotti

Linton said:

calcotti said:

Albermarle said:

I thought if you had a pension pot you were not drawing from, then when calculating benefits, the DWP had a formula for calculating a theoretical pension income you could be drawing , based on annuity rates etc ?
Or does that only apply when you are older, state pension age for example ?

Only if you are over pension age. The government do want pension funds held in authorised schemes used while below pension age.

Is there a NOT missing?  Surely the government dont want to force people to access pensions early.

Corrected,