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Pension credit and annuities.

mrsdoyle
mrsdoyle Posts: 76 Forumite
Sixth Anniversary 10 Posts Name Dropper
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

  • katejo
    katejo Posts: 4,109 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.
    I am not an expert but isn't it to do with the age requirement for access to the state pension (as opposed to your private pension)? I am 60 now and could access part of my private one now without penalty but won't get my state pension until I am 67 (official retirement age by 2030)
  • p00hsticks
    p00hsticks Posts: 13,917 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.  
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
  • mrsdoyle
    mrsdoyle Posts: 76 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    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.  
    But shouldnt it be from the date I applied for the Pension credit ?
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    mrsdoyle 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.  
    But shouldnt it be from the date I applied for the Pension credit ?
    Which pension credit is 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.
  • mrsdoyle
    mrsdoyle Posts: 76 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    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.
    I am not an expert but isn't it to do with the age requirement for access to the state pension (as opposed to your private pension)? I am 60 now and could access part of my private one now without penalty but won't get my state pension until I am 67 (official retirement age by 2030)
    dunstonh said:
    mrsdoyle 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.  
    But shouldnt it be from the date I applied for the Pension credit ?
    Which pension credit is it?
    The savings part is age 65 but the guarantee part is state pension age.


    Its the guarantee part
  • mrsdoyle
    mrsdoyle Posts: 76 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    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.
    I am not an expert but isn't it to do with the age requirement for access to the state pension (as opposed to your private pension)? I am 60 now and could access part of my private one now without penalty but won't get my state pension until I am 67 (official retirement age by 2030)
    Im 66 now and receiving state pension,but my official retirement age with the Private pension company is 70.
  • Albermarle
    Albermarle Posts: 25,919 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    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.
    I am not an expert but isn't it to do with the age requirement for access to the state pension (as opposed to your private pension)? I am 60 now and could access part of my private one now without penalty but won't get my state pension until I am 67 (official retirement age by 2030)
    Im 66 now and receiving state pension,but my official retirement age with the Private pension company is 70.
    That is unusual. Are you sure that there is definitely no access before then, or is 70 just some kind of indicated retirement date ?
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.


    https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

  • mrsdoyle
    mrsdoyle Posts: 76 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    I applied for PC 2 months before I turned 66.
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