Pension and benefits

RamsgateDave

I have a friend who’s ill and is going to retire at 65 they can get all there pension in a lump sent they are thinking of spending all the lump sum on cruises and buying new car and doing house upgrades,if they spend it all around £150,000 when they are 65 will there benefits be impacted at  67 if they had none of it left 

Dazed_and_C0nfused

RamsgateDave said:

I have a friend who’s ill and is going to retire at 65 they can get all there pension in a lump sent they are thinking of spending all the lump sum on cruises and buying new car and doing house upgrades,if they spend it all around £150,000 when they are 65 will there benefits be impacted at  67 if they had none of it left 

What benefits are they thinking of claiming at 67?

RamsgateDave

I gave a friend who is in ill health and is going to retire at 65 ,they can take a £150 lump sum and no pension,if they spend all this money before getting state pension at 67 would there benefits be affected is council tax paid and rent they will spend all £150,000 at 65 

Keep_pedalling

Duplicate post. 

Keep_pedalling

Sounds like that would be deliberate deprivation of assets.

Flugelhorn

why are they wanting to take it all in one lump sum?

elsien

RamsgateDave said:

I have a friend who’s ill and is going to retire at 65 they can get all there pension in a lump sent they are thinking of spending all the lump sum on cruises and buying new car and doing house upgrades,if they spend it all around £150,000 when they are 65 will there benefits be impacted at  67 if they had none of it left 

Yes the benefits will be impacted. They wouldn’t get any means tested ones.
Pretty sure you/they already know this.

Linton

Probably best to ask on the Benefits forum.  It would be very surprising if you could give away/spend £150K pension savings at 65 and then claim you were in poverty.

Taking £150K as a single pension lump sum could give rise to a very high tax deduction depending on the nature of the pension scheme.  More details are required.

elsien

They have already asked on the benefits forum. Hence the notice that this is a duplicate post.

Keep_pedalling

No longer a duplicate thread the MSE Christmas Elves are working fast this Boxing Day. 😀

Muttleythefrog

RamsgateDave said:

I have a friend who’s ill and is going to retire at 65 they can get all there pension in a lump sent they are thinking of spending all the lump sum on cruises and buying new car and doing house upgrades,if they spend it all around £150,000 when they are 65 will there benefits be impacted at  67 if they had none of it left 

Would likely (although these things are always case by case basis) be considered deprivation of capital so no to means tested benefits. Too risky.