Claiming UC/JSA for only a couple of months

USERerrorUSER

The situation is I get access to my Pensions in April 2027, I am currently living off savings and investments, but I forecast them to run out around Jan/Feb 2027, therefore I would possibly have to claim UC/JSA for two months to get me to my pension. The problem is I really don't want to have to seek work for those 8 to 10 weeks as it seems pointless unless it's an extremely short/ zero hours contract, as I have no intention of working after I get my pensions. Credit isn't an option due to my circumstances (47k in debt intending to deal with that when pension arrives)

What is likely in my claimant commitments if I basically state I only need UC definitively for a few months.

Grumpy_chap

USERerrorUSER

Today at 3:45PM

The situation is I get access to my Pensions in April 2027, I am currently living off savings and investments, but I forecast them to run out around Jan/Feb 2027, therefore I would possibly have to claim UC/JSA for two months to get me to my pension. The problem is I really don't want to have to seek work for those 8 to 10 weeks as it seems pointless unless it's an extremely short/ zero hours contract, as I have no intention of working after I get my pensions. Credit isn't an option due to my circumstances (47k in debt intending to deal with that when pension arrives)

What is likely in my claimant commitments if I basically state I only need UC definitively for a few months.

When were you last working? Do you have NI credits in the past two years?

Why are you not working now?

If you are currently living off investments then I suspect you have capital exceeding £16k and would not be able to claim UC. Depending upon your NI record, you may be able to claim nJSA (which is why I asked the two questions I asked). That can be £95.55 per week for up to 6 months. If you claim that now rather than wait until your savings run out, it might be sufficient to allow your savings to stretch until April.

Are your pensions well-funded to give you a good retirement despite needing £47k to clear debt and (I assume) retiring early if you are accessing pension at earliest opportunity, age 55? That assumption might be incorrect, if it is a later access age to a work-linked pension.

USERerrorUSER

I have a db pension of ENOUGH pa and 134k lump sum (this is after actuarial reduction due to early access) and also a 130k SIPP.

I was made redundant last April. I was hoping to use my redundancy payment to see through to my Pension, but alas, I'm forecasting to come up about 8 to 10 weeks short. I really really do not want to re enter the work force again, that's why I am not claiming JSA. Current savings are above UC but they will fall below that at end of year.

It's a cashflow problem really, if I can't get government benefit help without resorting to work commitments, then I shall find an alternative solution. Sorry if that sounds a bit selfish.

sammyjammy

Not selfish at all, selfish would be taking that money on pretence of seeking work.

Grumpy_chap

How does the £20k per year pension compare to your income when you were working?

Have you prepared your budget for retirement to be sure that you won't accrue new debts once living on the pension?

USERerrorUSER

https://forums.moneysavingexpert.com/discussion/comment/82045347#Comment_82045347

Yes, its enough and yes I have been planning early retirement for 10+years, its not really the point of this thread. Its the unexpected redundancy that has thrown me, leading to a 8 to 10 week shortfall in money to get to the pension.

NedS

Can you use credit cards to cover your living expenses for a few weeks until you receive your pension. Maybe you can slightly reduce outgoings now to stretch what you have a little longer to reduce the shortfall gap down to one month and maybe cover that on credit card?

If you claim means tested benefits, you will be required to attend jobcentre appointments and look for and be available for work.

Don't forget to speak with your pension administrator and apply to take your pension in plenty of time. Some ask you to do this 4 months in advance, but I'd probably be starting that process 6 months beforehand, especially if I knew I needed the money and didn't have any savings to fall back on to tide me over if they are late commencing payments.

huckster

If you claim out of work benefits where you are fit to work, you have to evidence that you are available to work and are actively seeking work.if you attend the Job Centre they will ask you for this evidence.

Why not go and live abroad, somewhere where living costs are less and let your property out while you are away? Have you looked into this as an option?

Grumpy_chap

If you claim means tested benefits, you will be required to attend jobcentre appointments and look for and be available for work.

Same would apply for nJSA, even though that is not means-tested.

Why not go and live abroad, somewhere where living costs are less and let your property out while you are away? Have you looked into this as an option?

The OP would need to consider all the liabilities of being a non-resident LL, plus the ease (or otherwise) of being able to return to the property when desired.

I am a LL but I would not start a new letting with the expectation of it being for only a year or less. If letting own home one also has to consider the emotional attachment that there might be.

Robbie64

If claiming UC or NJSA then there would be a need to be job seeking for full time work unless it would be reasonable to limit the hours of availability. In the first instance this would be 35 hours per week spent taking steps to find a job which pays 35 x National Minimum Wage per week. You would have to sign a Claimant Commitment to agree this or provide reasons why it is reasonable for you to restrict your hours.

If you know you are going to run short of funds in January or February could you not look to find short term work in advance of this so that you can stretch the funds you have until April?

huckster

I have witnessed people crying as they had run out of money before pension age and then had to claim job seeking benefits also taking benefit advances. And then not having enough money to pay bills as they reached pension age, they also had to ask for advance payment of State pension, as people were not prepared to wait weeks for pension to be received.

Obtaining some temporary work for a few months and building up reserves may well enable people in this position to enter retirement in a less stressful way.