Hi, my name is Oldgit! Do I need to claim my pension, or can I claim benefits first?

Oldgit
Oldgit Online Community Member Posts: 2 Listener
edited June 11 in Benefits and income

Hi there another newbie, I'm a 62 year old man, disabled and had to leave work because of my disability, I do get full pip and currently drawing from my personal pension which is not a great amount and which will run out before I officially retire, my question is do I need to use my personal pension or can I claim benefits and leave my personal pension till I retire, any help would be appreciated

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  • Rosie_Scope
    Rosie_Scope Posts: 6,005 Scope Online Community Coordinator

    Hi @Oldgit, welcome to the community ☺️

    You should still be able to claim Universal Credit if you're not able to work as you're under State Pension age. Have a little look at the eligibility requirements to see whether it might be an option:

    Universal Credit: Eligibility - GOV.UK

    You could also try using a benefits calculator. They're not always totally accurate but they can give you a good idea of what you might be eligible to claim.

    Turn2us Benefits Calculator

    Many of our members have been through the process of starting up on benefits so if you have any questions about anything please feel free to ask away!

  • Mary_Scope
    Mary_Scope Posts: 1,787 Scope Online Community Children and Family Specialists

    A warm welcome to the community from me @Oldgit 😄

  • Santosha12
    Santosha12 Online Community Member Posts: 1,355 Trailblazing

    Hi @oldgit, welcome to the community!

    I'm also 62 and I'm in receipt of a small, private pension for around 15 years now. When I worked the pension was taxed.

    I lost my job through ill health in June 2023 and receive UC, LCWRA and PIP. The private pension is deducted in full from my UC. I receive it separately of course from the pension provider but the full amount is deducted in full from my UC entitlement.

    I'm not sure whether if you're already receiving the private pension that you can change your mind to not receiving it. I hope you can if you want to.

    I'd recommend contacting your pension provider to check if you have a choice now to stop receiving it (I might have read your post wrong sorry but I think you're saying you receive it now). And whether you have a choice to receive it as a lump sum now if you was thinking of that as an option.

    In case you do think of taking it as a lump sum, with UC you can have up to 6k in savings and that doesn't affect your UC. Between 6k and 16k of savings there are deductions (sorry I don't know what these are) from UC, and above 16k savings the UC is not then paid and the claim is closed.

    It might be worth you ringing the Citizens Advice Bureau to check your options precisely.

    Please feel free to asking you've any questions at all; I hope my reply isn't confusing, I'm not an expert at all - this is just from my own experience.

    With very best wishes to you.

  • Oldgit
    Oldgit Online Community Member Posts: 2 Listener

    Thank you santosha12 for your reply, I left work age 57 due to ill health, my pension provider/financial adviser didn't really say anything about benefits, he just provided a plan so that my pension would last until I hit 67 and able to claim my government pension, however with covid and the magnificent government with their interest rates not doing anything, my pension pot hasn't made anything and will run out before I officially retire hence why I questioned the possibility of not drawing my personal pension and try and claim any benefits, the whole saga makes me wonder why I paid into a personal pension in the first place, but thank you again

  • Santosha12
    Santosha12 Online Community Member Posts: 1,355 Trailblazing
    https://forum.scope.org.uk/discussion/comment/1035996#Comment_1035996

    You're welcome. When I was first applying for UC I thought I'd still get my pension as well - I didn't know it gets deducted off the UC but it is a small amount, but still felt a bit annoying tbh.

    I'm not suggesting though that you wouldn't still get UC it's around 400.00 a month for a single person now plus housing benefit (if you're renting) but the fact that they deduct the pension can make a difference whether it's worth claiming UC.

    It's a typical example where you're given something with one hand and it's taken right back off you with the other 😬.

    It might still be worth checking with CAB.

    I'm not trying to be nosey but I receive LCWRA (limited capability for work and related activities) that is paid after being assessed (via a UC50 form) and found too ill or disabled to work. That is paid separately to UC (is deducted I think from UC too but is still paid separately each fortnight). If you were entitled to that it doesn't affect your PIP or your pension and that's c 470 a month. I am pretty sure LCWRA is not means-tested.

    Anyway, all the very best to you and I hope further checks you might do are of help to you.

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