Pensions

kane1994
kane1994 Online Community Member Posts: 117 Contributor
in Universal Credit (UC)
Hi does taking out a pension on full affect uc with now having lcwra 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Pension lumps sum are classed as capital and will reduce your UC by £4.35/month for every £250 or part there of over £6,000. For savings of more than £16,000 entitlement to UC will end.

    A weekly/monthly income from a pension will be classed as income and reduce your UC £1 for £1. For this reason it makes no sense to draw an income from a pension.

    If you're claiming council tax reduction then some local Authorities have a maximum savings limit of £6,000 before entitlement to CTR ends.
  • kane1994
    kane1994 Online Community Member Posts: 117 Contributor
    My pension is £3200 or a little over could you work that out as I have trouble with numbers 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Is that a lump sum? If so and it doesn't take your savings to more then £6,000 then there will be no affect on your UC.
  • kane1994
    kane1994 Online Community Member Posts: 117 Contributor
    Hi I have no savings and yes it's a lump sum I'm only 29 but due to ill health I can't work so I would like to take it out on medical grounds 
  • kane1994
    kane1994 Online Community Member Posts: 117 Contributor
    Also how would I go about taking out the full pension pot at 29 what would I need to do 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited May 2023
    kane1994 said:
    Also how would I go about taking out the full pension pot at 29 what would I need to do 
    A pension pot is not normally accessible until the age of 55 (to increase to 57 in 2028).
    https://www.gov.uk/personal-pensions-your-rights/how-you-can-take-pension
    https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/when-can-i-take-money-from-my-pension

    You may be able to access a pension pot early on ill health grounds but most likely if you are likely to die within 12 months.
    https://www.gov.uk/early-retirement-pension/personal-and-workplace-pensions

Categories