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Converting A Classic Civil Service Pension To A Different Type Of Pension

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  • Newcad
    Newcad Posts: 1,816 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    edited 27 November 2024 at 9:31AM
    Paul Treolar generally knows his stuff, if you look at his later post he does also bring up one the the points I made earlier about not counting it as both income and capital:
    However, there is also an understanding that any particular asset can only be treated as capital or income to avoid double counting of assets. If the capital is taken into account but disregarded, do we even need to look at whether it’s an income source?
    The answer by Gareth Morgan at reply #2 also reinforces how the DWP have been regarding deferred pensions below SPA.
    He posts:
    I had a conversation some years ago with a senior PC policy person about, specifically, the DC side of this. The response was that they had a blanket intention to disregard any untaken pension income pre SPA.
    Plus if you look at Reg 74.(3), which is quoted in Paul's OP there, then it clearly restricts the treatment of deferred income from a retirement pension as only becoming being notional income after Pension Credit qualifying age (ie. SPA) has been reached.
    https://www.legislation.gov.uk/uksi/2013/376/regulation/74


  • Catonthemoon
    Catonthemoon Posts: 28 Forumite
    10 Posts Name Dropper Photogenic
    Just a slightly different take on this. On these threads, all references to notional income appears to be in connection with pensions. Can anyone give an example of how notional income would come into play in circumstances other than pensions?
    Thank you, Cotm
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