taking money from private pension

Hunnie1977

as in rental  private at  present and get some help from UC

sammyjammy

Hunnie1977 said:

as in rental  private at  present and get some help from UC

If you take a monthly income from your pensions it will impact on your UC.

Marcon

DE_612183 said:

First 24% is tax free.

Everything else will depend on your other income as it gets classed as income.

25% assuming it's a defined contribution pot.

Brie

Won't taking a lump sum affect UC as well?  Assuming it pushes her over the allowed savings limits?

MEM62

Hunnie1977 said:

I have taken the 25% tax free to clear a few debts  

So you have already taken from your future self to fund todays living.  

Hunnie1977 said:

As not know what is round the corner and not want to leave pot toHMRC as the taken in enoungh in tax from years of work 

An argument I see a lot.  Making plans on the basis that you will not live long enough to benefit from your pension is a fundamentally flawed strategy.  And living retirement in poverty just to ensure that the HMRC do not get their hands on your pot is even more illogical.  What makes you think that they are entitled to it?  You leave it to anyone that you choose to.  The tax man does not get it.

Unless you have a huge pension pot, robbing your pension to live now is a seriously short sighted policy.  You really need to re-think your strategy here.  Living out your final years in poverty because you have squandered your pension during your working years and given chunks of it to your son makes no sense.     

Hunnie1977

Let me give you all a bit for infor am getting UC but it just about covers my council tax as thouhght would get rent covered with payment from uc but the make dedctions as working and thinking have moines in current account which at present runs on od 
thus want get advise if say too 150 from each pot one to for son for raniy day and other for me to make ends met in the this finniacl clmate

MallyGirl

That is quite hard to follow with all the typos. If you take income from pensions you are likely to lose an equivalent amount from UC so you end up no better off but your pension is smaller. You certainly shouldn't be raiding the pension for a rainy day fund. If you can't make ends meet while working what are you going to live off in retirement. Will the state pension be enough if you have used up all your pensions by then?

Hunnie1977

my pot is around 60 and paying around 354. a year in admin cost 
am awaiting response re my other pot 
thus my question as finances are tight both pots are frozen 

Hunnie1977

other plan has 31k am awaiting service charge cost from the provider 

crv1963

Hi your objectives seem unclear. From your posts you say you are paying maintenance to your ex for her and your son. I take it then that your son is school age? You have moved to somewhere and commute 17 miles to work and see your son? UC is claimed, this helps with your costs of living? You have taken the 25% tax free lump sum from both of your pensions to pay off debts owed. Your aim is to take some income to help with cost of living and to give son some money for a rainy day?

I would suggest:- 1) Drawing pension is a poor idea as any income will lead to a reduction and potential stopping of any UC claim. 2) Drawing pension to give son "rainy day savings" is a poor idea, you don't know what is in the future and you may need this money. 3) Sit son down, explain that you are not as well off as you would like and should things change in the future you will help him financially but for the time being all you can give him is your time, believe me time for children is more important than money, memories last, this years must have trainers don't!