Pension and benefits

sarnie1

I've only just signed up so new to this and I hope someone may be able to help me. I have a question about my retirement that is worrying me a little.

I am due to retire in November this year. My partner is 17 years my junior and we have very happily lived together in a housing association house for many years. My partner has been on benefits since before I met him (18 years ago) and in the last 4 years, I too, am in receipt of benefits. We both get Universal Credit at the couples rate, and my partner gets the extra disability element as he is unable to work at all (LCWWRA). We both are in receipt of PIP living allowance at the lower rate. Our rent and council tax is covered by UC.

My question is: Once i start to receive my pension will it affect my partners benefit with UC, as we have to claim as a couple? I spoke briefly to a work coach at UC who explained that pension is classed as income and will significantly lower the amount of benefit my partner receives.

Can someone please help to clarify as we both find it confusing and stressful.

Kimmy87

You will be known as a mixed age couple.

Your pension will reduce the UC award yes, but you will still have that pension coming in as income.

Pensions are treated as unearned income and will reduce the UC award £1 for £1 (so in full).

UC do need to be informed when you reach state pension age as their system doesn't always pick this up.

You can try a benefits calculator, answering as though you are already retired and receiving pension to see the estimated UC entitlement.

https://www.gov.uk/benefits-calculators

Council Tax is not covered by UC, Council Tax Reduction is administered by your local council. When you reach retirement you will need to report the change to them, and your CTR award will be re assessed.

As each Council runs a different scheme we are unable to advise on individual cases from here.

sarnie1

Hi Kimmy, thanks for your reply. And yes, I do remember council tax wasn't thru UC. My mistake.

I realise that my pension will reduce the amount we receive thru UC but surely that's only if we claim as a couple still. Can my partner not claim UC as a single person as it will only relate to him as I will not claim UC anymore once I receive my pension.

It's all very complicated and confusing, and maybe somewhat a bit unfair as we will be claiming two separate benefits, of which we're each entitled. I will use the benefits calculator tho to see what we'll end up with 🤔

Thanks very much for your help.

Kimmy87

You are a couple living together so your UC claim will be as a couple based on your circumstances.

You will be known as a mixed age couple for benefit purposes.

Any attempt to change to single claims would be fraudulent.

sarnie1

I wasn't attempting to change to single claims!! I asked the question 'if' we could claim singularly. There was no suggestion that we would.

Again, thank you for your advice.