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  • FIRST POST
    • boobless
    • By boobless 14th Jan 20, 12:50 PM
    • 151Posts
    • 116Thanks
    boobless
    Jsa and pension
    • #1
    • 14th Jan 20, 12:50 PM
    Jsa and pension 14th Jan 20 at 12:50 PM
    Hi, not sure i am in the right place 😂

    I turned 60 last week and have received some paperwork from a pension i was in, back in the 80ís. I had totally forgotten this. It amounts to £11,000

    I am in receipt of income based JSA with SDP and PIP enhanced rate for both parts.

    I have no savings or assets apart from my home which is still on mortgage with £10,200 outstanding.

    I understand that the benefits may be lost when i take this pension, i was hoping to pay the mortgage off with the pension.

    Can anyone tell me whether i will lose all benefits

    Thanks
    yes you can beat it - everyday is a bonus - use it well
Page 1
    • Dazed and confused
    • By Dazed and confused 14th Jan 20, 1:33 PM
    • 6,193 Posts
    • 3,305 Thanks
    Dazed and confused
    • #2
    • 14th Jan 20, 1:33 PM
    • #2
    • 14th Jan 20, 1:33 PM
    Do you mean you have a pension of £11,000.

    Or a pension fund of £11,000?
    • boobless
    • By boobless 14th Jan 20, 1:43 PM
    • 151 Posts
    • 116 Thanks
    boobless
    • #3
    • 14th Jan 20, 1:43 PM
    • #3
    • 14th Jan 20, 1:43 PM
    I take it its a pension fund, the forms are asking if i want to have it as a lump sum or invest in another pension plan or it can be a part lump sum and £44 per month

    Its all so confusing 🤪
    yes you can beat it - everyday is a bonus - use it well
    • xylophone
    • By xylophone 14th Jan 20, 2:15 PM
    • 32,048 Posts
    • 19,919 Thanks
    xylophone
    • #4
    • 14th Jan 20, 2:15 PM
    • #4
    • 14th Jan 20, 2:15 PM
    https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

    Is the above of help?
    • boobless
    • By boobless 14th Jan 20, 2:29 PM
    • 151 Posts
    • 116 Thanks
    boobless
    • #5
    • 14th Jan 20, 2:29 PM
    • #5
    • 14th Jan 20, 2:29 PM
    Thank you for the link, it is confusing though, i seem not to qualify for pension credit till i am 65, and it refers you to pension wise but they just told me to ring each separate benefit centre for advice, so i am back to where i started 🤪
    yes you can beat it - everyday is a bonus - use it well
    • xylophone
    • By xylophone 14th Jan 20, 7:36 PM
    • 32,048 Posts
    • 19,919 Thanks
    xylophone
    • #6
    • 14th Jan 20, 7:36 PM
    • #6
    • 14th Jan 20, 7:36 PM
    I take it its a pension fund, the forms are asking if i want to have it as a lump sum or invest in another pension plan or it can be a part lump sum and £44 per month
    I am assuming that this is a DC pension and that you are being offered trivial commutation/25% PCLS and small annuity/transfer to another pension arrangement?

    As far as I can see, as you are under PC age, you do not have to access the pension and if you don't, then it will not be taken into account in respect of your means tested benefit (JSA Inc).

    If you do access the pension, then taken in full presumably it will be capital and if as PCLS/annuity as capital and income?

    I imagine that you would then need to have regard to the capital and income rules with respect to the MTB.

    It might be possible to transfer to a pension arrangement offering drawdown - this would enable you to take the PCLS and enough extra to stay under the £6000 which is a key figure as I understand it?

    Perhaps the rest could be taken as capital in the following tax year?

    But I am no authority in this area - perhaps one of the very knowledgeable posters will comment.
    • calcotti
    • By calcotti 14th Jan 20, 7:47 PM
    • 4,446 Posts
    • 3,019 Thanks
    calcotti
    • #7
    • 14th Jan 20, 7:47 PM
    • #7
    • 14th Jan 20, 7:47 PM
    You will not qualify for Pension Credit until you reach State Pension age which I would expect to be on your 66th birthday. https://www.gov.uk/state-pension-age

    As regards JSA any regular pension income will be deducted from your weekly JSA so you will be no better off financially.

    If you take a lump sum this will be treated as capital. The first £6,000 will be ignored (assuming you don’t already have any savings). Above this your JSA will be reduced by £1/week for every £250, or part thereof. So if you have £11,000 there will be a reduction of £20/week.

    You can if you wish, provided the scheme rules allow, simply leave the pension alone and instead claim it later.
    Last edited by calcotti; 14-01-2020 at 7:53 PM.
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