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  • FIRST POST
    • pattayapaul
    • By pattayapaul 15th Sep 19, 9:52 PM
    • 2Posts
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    pattayapaul
    Pension Credit
    • #1
    • 15th Sep 19, 9:52 PM
    Pension Credit 15th Sep 19 at 9:52 PM
    Hi, my mum has a pension with Greater Manchester Council.
    She is now 78.
    She is thinking if she can of a pension drawdown.
    Her husband just died and so now her Pension Credit has been stopped because her state pension has gone up (over the Pension Credit threshold) and she will get some money (percentage) from her deceased husband's pension (again Greater Manchester Council) added to her works pension.
    Here is a killer question, if she could do a drawdown so that she Is below the Pension Credit threshold she would be eligible for pension credit again, but would Pension Credit people accept that?
    So yes she would have savings so she would have to make sure that she did not have more than 10,000 for the Pension Credit limit (the house need major repairs).
    Cheers in advance.

    Paul
Page 1
    • venison
    • By venison 15th Sep 19, 9:59 PM
    • 3,779 Posts
    • 5,355 Thanks
    venison
    • #2
    • 15th Sep 19, 9:59 PM
    • #2
    • 15th Sep 19, 9:59 PM
    The first question needs to be asked of the GMC pension fund, as she is already taking a pension I doubt that the drawdown will be available under current rules.
    "For the many not the few"
    • Alice Holt
    • By Alice Holt 16th Sep 19, 6:16 AM
    • 3,309 Posts
    • 3,867 Thanks
    Alice Holt
    • #3
    • 16th Sep 19, 6:16 AM
    • #3
    • 16th Sep 19, 6:16 AM
    "to make sure that she did not have more than 10,000 for the Pension Credit limit"

    There is no 10k limit for PC.

    If the occupational pension is defined benefit (likely if a LA pension), drawdown is not an option.
    Is the pension(s) defined benefit or defined contribution?

    "if she could do a drawdown so that she Is below the Pension Credit threshold she would be eligible for pension credit again"
    Your premise is incorrect, as you misunderstand how both occupational pensions and PC work.

    https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf
    https://www.moneyadviceservice.org.uk/en/articles/income-drawdown
    https://www.which.co.uk/money/pensions-and-retirement/options-for-cashing-in-your-pensions/income-drawdown/what-is-income-drawdown-apsqg6y8pg57
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
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