25% pension

in Child support
2 replies 352 views
StuartUStuartU Forumite
1 Post
Newbie
If I took my 25% tax free pension now (57yo)does it affect my Child Maintenance payments e.g will they go up?

Replies

  • TBagpussTBagpuss Forumite
    10.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Maintenance is normally based on income, not capital, so taking a lump sum is unlikely to affect child support but if you start to draw your pension as well that may do so,. 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • ClearchemClearchem Forumite
    25 Posts
    Third Anniversary 10 Posts Name Dropper
    Forumite
    Depends on the value of the lump sum. It comes from income not assessed for child maintenance as pensions are rightly exempt, as they are not for your children they are for you, and would always reduce available money for the children, resident parent or not.

    If the lump sum is over 31250 the receiving parent can request a variation to assess the sum for 8% notional income against which their usual % 12 16 or 20 would be due.

    If you draw the pension it is now income and will be assessed for cms.

    So yes your cms payment could go up.
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