Paying into a Pension while on benefits
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ISA_saver_man
Posts: 2 Newbie
My daughter has always been a careful person with money, she is currently on benefits but would like to put a small amount away into a pension for the future.
Is this possible and would the pension be classed as savings and any future drawdown classed as income.
It would only be a couple of hundred pound per year, but would be something to help with future expense.
Is this possible and would the pension be classed as savings and any future drawdown classed as income.
It would only be a couple of hundred pound per year, but would be something to help with future expense.
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drawdown would be income but a pension does not count as 'savings' when the holder is under state pension age.
Once they reach SPA it would be classified as deprivation of earnings (something like that) if they had a pension but didn't draw on it and went on to claim for pension credit/other benefitsI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.1 -
Has your daughter checked her state pension entitlement?
https://www.gov.uk/check-state-pension
https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits
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