How does a workplace pension effect housing benefit and council tax

meve1

Hi , I have a quick query that I cant seem to find an answer for. I live in rented accommodation and expect to till I die. Therefore I will need to claim housing/council tax benefit when I retire, I live on my own and am not on a great wage and the government workplace takes money from my monthly pay that I really do feel I need. My question is -How does a workplace pension effect any housing benefit ?council tax benefit I may claim when I retire. These benefits are both means tested so will they significantly reduce if I am getting a small amount per month from the government workplace pension . How can I find out by how much. I have tried benefits calulators etc but I can seem to find a definitive answer .Is it worth me struggling now to continue to pay into this. Thanks for any advice

racyguy

As with any means tested benefits of which Council Tax Support and Housing Benefit are two ALL income from pensions will be used to calculate the level of the support available.
Obviously the purpose of having a works pension is to provide you with some level of income and therefore reduce dependency on the benefit system.
When eventually you are able to claim Pension Credit the amount will be assessed taking into account your private pensions to arrive at a figure that gives you a minimum income considered to be enough to live on.
Be thankful that you will receive the State Pension and a private one. Many do not have that luxury.

woodbine

@meve1 without knowing how much your private pension will be and you will get the full unified SRP it is impossible to advise on what other benefits you might or might not get. The other question would be is it a defined benefits works pension, or a defined contribution one? How long before you reach 66?
Armed with all that information (plus the pension pot value) you could speak to welfare rights who would answer your question.

calcotti

It is true that small amounts of pension income can be of little value if they simply reduce means tested benefits. However unless you are very close to pension age you can’t be certain about what benefits will be available when you get there.

Remember that when you pay into a pension fund through work your employer is adding money too as is the government. If it is a defined contribution scheme, rather then a defined benefit scheme, then when you reach later life you will be able to withdraw money as a lump sum if you prefer and this may have no impact on benefit entitlement (depending on your circumstances and benefit rules at the time). 

racyguy

Teddybear12 said:

If  meve1  gets a full state pension she will not be eligible for Pension Credit. Why should someone be thankful for getting a State Pension when they have paid enough National Insurance to make them eligible. Also my private pension is paid for by contributions I made while working. So I do not understand your "be thankful " and actually find it quite insulting.

My comment referred to the fact that the individual is to receive the benefit of a works pension. Many I know that worked for over 40 years have had to retire on just the State Pension!

poppy123456

racyguy said:

Teddybear12 said:

If  meve1  gets a full state pension she will not be eligible for Pension Credit. Why should someone be thankful for getting a State Pension when they have paid enough National Insurance to make them eligible. Also my private pension is paid for by contributions I made while working. So I do not understand your "be thankful " and actually find it quite insulting.

My comment referred to the fact that the individual is to receive the benefit of a works pension. Many I know that worked for over 40 years have had to retire on just the State Pension!

If you don't contribute to a pension, you won't receive the benefits from it, seems perfectly logical to me.