Pension and benefits

FIREDreamer

A state pension plus whatever (impaired life) annuity a fund of £150k would buy must provide a better standard of living than surviving on pension credit?

Murphybear

Muttleythefrog said:

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.

I think your friend may need some proper financial advice.  

When you say they are is ill, is it serious/terminal?  If so that may have a major impact on what they spend their money on.  I’m wondering if this is the case if they are going to spend money on cruises etc.  

RamsgateDave

They have COPD ,they live in social housing and if they spend all there pension money lump sum they will get there rent paid and council tax and get pension credit 

molerat

Well, the tax man will certainly love them donating £48K best case to the nation's coffers, nearer £66K taken off the payment before claiming some back.   Having that much and getting rid of it could be viewed as still having it for benefit calculations.  Not a very clever move.

Spoonie_Turtle

RamsgateDave said:

They have COPD ,they live in social housing and if they spend all there pension money lump sum they will get there rent paid and council tax and get pension credit 

No they won't, if they've frittered it away on what's deemed to be unreasonable spending.  They'll be treated as still having the money and thus definitely not be eligible for Housing Benefit or Council Tax Support, and almost certainly won't qualify for Pension Credit.

noitsnotme

RamsgateDave said:

They have COPD ,they live in social housing and if they spend all there pension money lump sum they will get there rent paid and council tax and get pension credit 

You really need to stop listening to the blokes down the pub.  They rarely know what they’re talking about.

poppy12345

RamsgateDave said:

They have COPD ,they live in social housing and if they spend all there pension money lump sum they will get there rent paid and council tax and get pension credit 

You should read the whole thread again because that's not the advice you were given. 

peteuk

RamsgateDave said:

They have COPD ,they live in social housing and if they spend all there pension money lump sum they will get there rent paid and council tax and get pension credit 

As they have a life limiting illness, its fair to say at somepoint they may need to move into a care or nursing home.  Then if they do spend the money as above it will be classed as they still have it, and this is not time limited.