Cashing in private pension to buy a car

Hi, I need to buy a new car.  If I cashed in some private pensions, how would that affect universal credit? The pension money would only be in my bank account for a few days before paying for a car. Would I need to let universal credit know? Thanks

Comments

  • peteuk
    peteuk Posts: 1,227
    First Post Name Dropper First Anniversary Combo Breaker
    Forumite
    I believe that as long as the money is not in your account on the final day of your award period then you should not need to declare it. 
    Eg if your award period is 02 Nov - 02 Dec and the pension pays out 20 Nov but you dont buy the car until 05 Dec then you would need to declare anything over £6K and equally anything over £16K 

    But if you buy the car on 25 Nov, thus the money isn’t in your account for 02 Dec then no you dont need to declare it. 

    Even if you did need to declare it then buying a new car can be allowed as long as you’re not buying something mega expensive as this may be seen as deprecation of capital.  Eg buying a Porsche
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards