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Pension credit and annuities.

mrsdoyle
Posts: 76 Forumite

Just been speaking to pension credit people (not touching my pot) and have been told that notional income would apply from when I was 65 (am now 66) as this was income available to me. Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55. To everyone,have a look here;https://www.gov.uk/government/publications/pension-credit-technical-guidance/a-detailed-guide-to-pension-credit-for-advisers-and-others#pensions-flexibilities
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Comments
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mrsdoyle said:Just been speaking to pension credit people (not touching my pot) and have been told that notional income would apply from when I was 65 (am now 66) as this was income available to me. Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55.1
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Why do you think it's incorrect ?
Yes you could have taken money from your pot since you were 55, but didn't. I'm not a benefits expert, so I'm not sure what would happen if you had done so and emptied the pot before you reached State Pension Age, but I guess it;s possible that if it was a large amount of money then DWP could look into whether it should be taken into account when considering your Pension credit claim.
Pension Credit is a means tested benefit and if you have access to a Pension pot but choose not to drawdown from it, then the amount if benefit will be calculated as if you are - yo ucan;t have your cake and eat it.1 -
Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55.I have seen some people have notional income treated since age 60 (based on scheme age). However, 65 is the norm.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
p00hsticks said:Why do you think it's incorrect ?
Yes you could have taken money from your pot since you were 55, but didn't. I'm not a benefits expert, so I'm not sure what would happen if you had done so and emptied the pot before you reached State Pension Age, but I guess it;s possible that if it was a large amount of money then DWP could look into whether it should be taken into account when considering your Pension credit claim.
Pension Credit is a means tested benefit and if you have access to a Pension pot but choose not to drawdown from it, then the amount if benefit will be calculated as if you are - yo ucan;t have your cake and eat it.0 -
mrsdoyle said:p00hsticks said:Why do you think it's incorrect ?
Yes you could have taken money from your pot since you were 55, but didn't. I'm not a benefits expert, so I'm not sure what would happen if you had done so and emptied the pot before you reached State Pension Age, but I guess it;s possible that if it was a large amount of money then DWP could look into whether it should be taken into account when considering your Pension credit claim.
Pension Credit is a means tested benefit and if you have access to a Pension pot but choose not to drawdown from it, then the amount if benefit will be calculated as if you are - yo ucan;t have your cake and eat it.
The savings part is age 65 but the guarantee part is state pension age.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
katejo said:mrsdoyle said:Just been speaking to pension credit people (not touching my pot) and have been told that notional income would apply from when I was 65 (am now 66) as this was income available to me. Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55.dunstonh said:mrsdoyle said:p00hsticks said:Why do you think it's incorrect ?
Yes you could have taken money from your pot since you were 55, but didn't. I'm not a benefits expert, so I'm not sure what would happen if you had done so and emptied the pot before you reached State Pension Age, but I guess it;s possible that if it was a large amount of money then DWP could look into whether it should be taken into account when considering your Pension credit claim.
Pension Credit is a means tested benefit and if you have access to a Pension pot but choose not to drawdown from it, then the amount if benefit will be calculated as if you are - yo ucan;t have your cake and eat it.
The savings part is age 65 but the guarantee part is state pension age.0 -
katejo said:mrsdoyle said:Just been speaking to pension credit people (not touching my pot) and have been told that notional income would apply from when I was 65 (am now 66) as this was income available to me. Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55.0
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mrsdoyle said:katejo said:mrsdoyle said:Just been speaking to pension credit people (not touching my pot) and have been told that notional income would apply from when I was 65 (am now 66) as this was income available to me. Surely this is incorrect as I could have accessed my pot in any way I liked since I was 55.1
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but my official retirement age with the Private pension company is 70.
You are now over the qualifying age for pension credit.
If this is a standard DC pension and you can access it without penalty, I think that you would be hard put to argue that the usual rules would not apply.
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I applied for PC 2 months before I turned 66.0
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