Universal Credit and pension draw down

housebuyer143

LockyBoy_2 said:

I feel frusteted at this, but understand it, to me,  the £100/month is'nt worth it as I do'nt feel I'II last another 10 years! I'd miuch rather give my kids something now which they could benefit from now!  But I get around £400/month form UC, so that means no UC for aroung 10 years!

I suppose you need to consider that UC is for people who are low income and need it. If you have £40k you don't need it. 
Loads of people would love to give their kids £40k but they need that money for retirement. 

LockyBoy_2

True, though they don't know about my 'windfall' pension! my eldest has a new baby, my middle and next son have just moved and looking for work, and my daughter is unhappy at her mum's and wants to move(on apprenticehip wages), so I'd like to help them if possible, in 10 years, when the pension matures, their situations (hopefully) will be much different, so would like to help them when they need it!

LockyBoy_2

if it makes any difference, the pension is a defined contribution money purchase plan

poppy12345

LockyBoy_2 said:

True, though they don't know about my 'windfall' pension! my eldest has a new baby, my middle and next son have just moved and looking for work, and my daughter is unhappy at her mum's and wants to move(on apprenticehip wages), so I'd like to help them if possible, in 10 years, when the pension matures, their situations (hopefully) will be much different, so would like to help them when they need it!

They will find out if you withdraw a lump sum and don’t report the changes. You will then need to repay everything back that you received from the assessment period in which you received the lump sum. 

I wouldn’t advise to withdraw the money and not report the changes because this would be benefit fraud. 

Regardless of the circumstances of your children you can’t just give away your money and still be expected to claim a means tested benefit. 

LockyBoy_2 said:

if it makes any difference, the pension is a defined contribution money purchase plan

That makes no difference and the law is still the same. 

sammyjammy

poppy12345 said:

LockyBoy_2 said:

True, though they don't know about my 'windfall' pension! my eldest has a new baby, my middle and next son have just moved and looking for work, and my daughter is unhappy at her mum's and wants to move(on apprenticehip wages), so I'd like to help them if possible, in 10 years, when the pension matures, their situations (hopefully) will be much different, so would like to help them when they need it!

They will find out if you withdraw a lump sum and don’t report the changes. You will then need to repay everything back that you received from the assessment period in which you received the lump sum. 

I wouldn’t advise to withdraw the money and not report the changes because this would be benefit fraud. 

Regardless of the circumstances of your children you can’t just give away your money and still be expected to claim a means tested benefit. 

LockyBoy_2 said:

if it makes any difference, the pension is a defined contribution money purchase plan

That makes no difference and the law is still the same. 

I think OP meant the children don't know about the potential windfall.

Alice_Holt

LockyBoy_2 said:

I feel frusteted at this, but understand it, to me,  the £100/month is'nt worth it as I do'nt feel I'II last another 10 years! I'd miuch rather give my kids something now which they could benefit from now!  But I get around £400/month form UC, so that means no UC for aroung 10 years!

        What type of pension is it ?
        Have you nominated your children as beneficiaries for your pension ?
        You may want to get a Pension Wise appt re your children inheriting your pension. 

LockyBoy_2

You're right, my children don't know of my intentions, I only found out about my additional pension a few weeks ago, just wanted to help them out, as when the pension matures, an extra £100/month won't really benefit me in 11 years time, whereas £10,000 each now would make a massive difference to them,

 I have no intention of not telling DWP about withdrawing the pension if I do, but it seems my kids will miss out as I need UC to tick over, or my kids benefit and I'll with no UC for 10 years, catch 22!

Alice_Holt

LockyBoy_2 said:

You're right, my children don't know of my intentions, I only found out about my additional pension a few weeks ago, just wanted to help them out, as when the pension matures, an extra £100/month won't really benefit me in 11 years time, whereas £10,000 each now would make a massive difference to them,

 I have no intention of not telling DWP about withdrawing the pension if I do, but it seems my kids will miss out as I need UC to tick over, or my kids benefit and I'll with no UC for 10 years, catch 22!

           What type of pension is it ?

        Have you nominated your children as beneficiaries for your pension ?
        You may want to get a Pension Wise appt re your children inheriting your pension. 

LockyBoy_2

if it makes any difference, the pension is a defined contribution money purchase plan

Alice_Holt

LockyBoy_2 said:

if it makes any difference, the pension is a defined contribution money purchase plan

     Yes it does make a difference, had it been a defined benefit scheme - you wouldn't have access to a pot of money.

      Have you nominated your children as beneficiaries for your pension ?

      You may want to get a Pension Wise appt re your children inheriting your pension.