Need some advice regarding 16k saving

Alice_Holt

JayKay70 said:

KxMx said:

Income Support claims are being migrated to Universal Credit, so at 67 you will be getting UC and yes that will stop. 

At 67 you will get your private pension + state pension. 

I'm totally confused, i thought i read the previous replies said because i have a private pension i cant get state pension until my private pension money falls below 16k.

So will i still be getting UC right up until I'm 67 or does it stop at 55 because i have a private pension because they expect me to use that?

        No, the state pension is not a means tested benefit (unlike IS & UC).
 It is not affected by other income (including private pensions) and capital / savings you may have in retirement.

       It is built up through National Insurance (NI) contributions -  as you are in receipt of IS you are getting NI credits towards your state pension. UC will also pay NI credits.

https://www.citizensadvice.org.uk/debt-and-money/pensions/types-of-pension/state-pension/



      UC can continue until you reach state retirement age.
   It doesn't stop at 55 and doesn't expect you to use your private pensions.

   PIP / (DLA) can continue past the state retirement age. Like the state pension it isn't means tested.


  Have you (or are you in the process of) applying for UC?
You don't automatically transfer from IS to UC - you need to apply per the notification letter:
https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/moving-to-universal-credit-from-other-benefits/

400ixl

As far as I am aware, your private pension is not taken into account whilst it is invested. Only if you draw down does it become part of your income. So if you don't touch it until 67 then it is discounted.

Have you checked your state pension forecast? What does that say? https://www.gov.uk/check-state-pension

Your private pension income (what you draw down from the pension in a financial year) + your state pension will be your income when you reach the state retirement age.

You can take up to 25% of a private pension tax free as a lump sum, or you can take it as a draw down and 25% of that income is tax free. The state pension is also seen as income so the two combined will be what you get taxed against.

If the amount you qualify for in state pension + private pension income is below the threshold you may be entitled to pension credit to top it up. Others will need to advise there as benefits is not an area i am familiar with.

Spoonie_Turtle

JayKay70 said:

KxMx said:

Income Support claims are being migrated to Universal Credit, so at 67 you will be getting UC and yes that will stop. 

At 67 you will get your private pension + state pension. 

I'm totally confused, i thought i read the previous replies said because i have a private pension i cant get state pension until my private pension money falls below 16k.

That's Pension Credit, the working age means-tested benefit (a bit like Income Support but for pensioners).

The actual state pension, as others have said, is not at all means-tested.

HillStreetBlues

Spoonie_Turtle said:

JayKay70 said:

KxMx said:

Income Support claims are being migrated to Universal Credit, so at 67 you will be getting UC and yes that will stop. 

At 67 you will get your private pension + state pension. 

I'm totally confused, i thought i read the previous replies said because i have a private pension i cant get state pension until my private pension money falls below 16k.

That's Pension Credit, the working age means-tested benefit (a bit like Income Support but for pensioners).

The actual state pension, as others have said, is not at all means-tested.

Just to be clear PC has no upper limit (£16k or otherwise). But with private pension OP unlikely to qualify for PC.

Alice_Holt

HillStreetBlues said:

Spoonie_Turtle said:

JayKay70 said:

KxMx said:

Income Support claims are being migrated to Universal Credit, so at 67 you will be getting UC and yes that will stop. 

At 67 you will get your private pension + state pension. 

I'm totally confused, i thought i read the previous replies said because i have a private pension i cant get state pension until my private pension money falls below 16k.

That's Pension Credit, the working age means-tested benefit (a bit like Income Support but for pensioners).

The actual state pension, as others have said, is not at all means-tested.

Just to be clear

1) PC has no upper limit (£16k or otherwise).

2)  But with private pension OP unlikely to qualify for PC.

 To further clarify:

 1)   PC is reduced by tariff payments when savings are above £10k, but as you say it doesn't have a capital limit.
      https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf
    (page 15)


2)   We can't assume that - if the OP receives a disability payment in retirement, then the PC minimum guarantee increases by £81 pw.   Which may be greater than his private pension.
    

HillStreetBlues

Alice_Holt said:

2)   We can't assume that - if the OP receives a disability payment in retirement, then the PC minimum guarantee increases by £81 pw.   Which may be greater than his private pension.
    

OP plans to take out the £60k so would be a £100pw deemed income. So as things stand wouldn't be entitled to PC even with the £81pw, as op worked all their until claiming IS.
But of course many things can change in the meantime.

JayKay70

@Alice_Holt thanks for your reply

So just to clear things up and that i fully understand what is going to happen, am i right with the following:

NOTE: This is based on me not touching my private pension until I'm 67, and when i do start to touch it i will only be taking very small amounts to get by in life, maybe a annuity (if that's what's it's called)

1: I will continue getting UC (Income Support & Housing Benefit) until I'm 67

2: I will continue getting PIP as it's not means tested

3: Once i reach 67 i will stop getting UC (Income Support & Housing Benefit)

4: Once i reach 67 i will start to get a State Pension and will continue getting my PIP

Does the above sound correct?

p.s Just out of curiosity, how do people who does not have a private pension and only get a state pension pay for their Housing Benefit, surely after all the other bills/food etc etc it would not leave them enough to pay for Housing Benefit.....aka Rent.

All the best

Jay

Alice_Holt

Yes that's right.

Once you reach SPA (and your UC ends) you can claim HB to help with rental payments.
So at SPA you can receive the state pension, your private pension, PIP, HB, and Council Tax reduction.

Note that when you have migrated to UC that includes an element to help with rental payments (so you don't need to continue to claim HB from the council). 

KxMx

Most* claims for housing those of working age are paid through Universal Credit- Housing Element. 

After someone reaches 67, you have to claim for Housing Benefit via local authority.

So you need to add in
5) Apply for Housing Benefit via local authority. 

You won't automatically get 100% benefit and both pensions will count as income.

My mum got her SP last year, that plus £30pw private pension means she gets housing benefit, but not at 100% of her rent, she is expected to make a contribution from her income.

*New claims cannot be made under 67 for housing benefit. Some will still be receiving hb under 67 due to not having a change of circumstances that triggers a transfer to UC. 

JayKay70

@Alice_Holt many thanks, phew i got there in the end, i thought getting older was meant to be peaceful, how wrong was i

Still with the help from you and many others my mind is a lot less stressed so thank you