Does anyone have info on cashing in private pensions?
Sandy_123
Scope Member Posts: 46,788 Disability Gamechanger
Hi does anyone have any proper info on cashing in private pensions, I've been googling aimlessly. I can take take a private pension, but trying to weigh pros and cons.
Comments
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It depends whether it's a lump sum you want or a weekly/monthly income. It also depends on what benefits exactly you're claiming, whether it will affect them. I'm sure someone will advise if you can give more information.
I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help. -
Its a lump sum not sure of what amount and so much each month I'm on lwcra uc
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If you take a monthly amount then this will reduce your UC £1 for £1 so in my opinion, it will not be worth you doing this at all because you won't be financially better off.The lump sum won't affect your UC if it doesn't take your total savings to more than £6,000 on the last day of your assessment period.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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Yeah that's not worth doing. I'm guessing a lump sum less then the cut off savings amount would be seen as unearned income?
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Sandy_123 said:Yeah that's not worth doing. I'm guessing a lump sum less then the cut off savings amount would be seen as unearned income?
Unearned income would be what regular pension payments are classed as and, as poppy says, this is deducted in full.
Taking pension income while on UC would be very foolish because you will gain nothing by way of current income but will obviously reduce your pension pot. Effectively all you would be doing is transferring your pension savings to the government.Information I post is for England unless otherwise stated. Rules may be different in other parts of UK. -
Yeah it would be foolish I guess it's best to leave it until state pension age
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Pension wise are great for advice and it's free:
https://www.citizensadvice.org.uk/debt-and-money/pensions/get-ready-for-your-pension-wise-appointment/
2024 The year of the general election...the time for change is coming 💡 -
I'm not sure what else Pension Wise can advise with, other than what's already been advised.
I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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