Starting a private pension

Pandora_2

Hi all,
I've been on UC and PIP for about 6 years since I became ill and unable to work. I have 2 rare autoimmune diseases which have no cure and although medication slows them down, they will progress and I will get more poorly as I get older so it's unlikely I will ever be able to work again.

I'm 43, single, no kids, private renting....
I have about 5k in a cash ISA but nothing in a pension. If I were to start a private pension and contribute to it from my UC and PIP, would this count as savings which would affect my benefit entitlement or is this allowed? Obviously savings over 6k reduce your entitlement to UC but I can't work out whether pension savings count or not?

Another thought, if I put my money into a pension would this be considered deprivation of capital or allowed spending?? 

Just worried about being old and ill and not having enough money to take care of myself.
Any advice would be great! Thanks!

sammyjammy

It won't count if you put it into  pension just think it through carefully, once its in it stays in until you are 57.  Don't leave yourself short, you can contribute up to 2880 from unearned income a year.

Pandora_2

I've almost paid off all my debts so will soon have that extra monthly payment amount not going out so I was thinking I could put that into a pension instead. I wouldn't notice it as I'm used to budgeting for that amount anyway. 

On the other hand, I don't know how long I will live for so saving into a pension I might never use would be pointless!! 

I could use the money to top up my rent and move to somewhere nicer and not full of damp! Maybe a better quality of life now is more important than saving for a future I might not even have?! 

nannytone_2

unless you can afford to pay a substantial amount into a pension, is it really worth doing in your circumstances?
Presumably, at retirement age, you would qualify for an income related top up to your state pension.
All a tiny private pension would do is reduce the top up pound for pound.
In effect you would be saving now for NO gain later

Pandora_2

Yeah, you're right. Doesn't seem worth it. Just scared with all the talk of pension reforms and cuts etc. Thanks. Will rethink what to do to improve my situation now rather than worry about the future! 

Catonthemoon

I agree with nannytone_2…it’s not worth doing now @ 43. You say your home has damp issues- could that be having an adverse effect on your health? If so, moving to a better property would be a wiser decision imo.