Reaching retirement, what happens to existing benefits?

MartinR
MartinR Online Community Member Posts: 14 Listener
in Benefits and income
Hi. I've tried looking for this information, but unable to find exactly what I'm looking for.
Both myself, and my partner will be 66 next year. I don't work due to poor health. We get UC. I get LCWRA, my partner gets Carer Element for caring for me. I receive Standard PIP. My partner currently works part time, but will retire May 2024. I reach retirement age August 2024.
I have checked on the Government Gateway about our State Pension. My partner will receive the full amount, I will get a bit less. 
I understand I will continue to get PIP. Will I still get LCWRA, and will my partner still get UC Carers Element?
Hoping someone can advise. Many thanks.

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited October 2023
    As your partner reaches this age before you then you will be classed as a mixed aged couple. Your UC will continue and you will still be entitled to the elements you're claiming now but your partners state pension will be deducted in full from any UC entitlement.

    As your partner is claiming carers element of UC then this will continue because it's not an overlapping benefit. It's Carers Allowance ( different to Carers element) that's an overlapping benefit.

    Once you reach state pension age your UC will end. You can check entitlement to Pension Credt and if it shows entitlement you can claim that as a couple. Your partner can claim Carers Allowance but because their state pension is more than the carers allowance they won't receive any money but they will have an underlying entitlement to it. This could mean that you maybe entitled to Pension Credit as it will include the carers premium in the calculation but it will depend on the figures. https://www.gov.uk/pension-credit/eligibility

    Does your partner claim a disablity benefit theirself? If so what award do they have?

    There's a pension credit calculator here, https://www.gov.uk/pension-credit-calculator fill that in as if you're both state pension age now and it will tell you if there's any entitlement. Do be aware though that benefits will likely increase from April next year and this calculator will only include the current rates.

    Edit to add, please make sure you claim your state pension and report the changes to UC once you reach this age. If you don't claim your state pension, you'll be treated as if you have and Notional Income rules will apply. This means that you will be treated as having that income and it will still be deducted in full from any UC entitlement. See link and scroll to H5150 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1174380/admh5.pdf





  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    poppy123456 said:
    As your partner reaches this age before you then you will be classed as a mixed aged couple. Your UC will continue and you will still be entitled to the elements you're claiming now but your partners state pension will be deducted in full from any UC entitlement.

    As your partner is claiming carers element of UC then this will continue because it's not an overlapping benefit. It's Carers Allowance ( different to Carers element) that's an overlapping benefit.

    Once you reach state pension age your UC will end. You can check entitlement to Pension Credt and if it shows entitlement you can claim that as a couple. Your partner can claim Carers Allowance but because their state pension is more than the carers allowance they won't receive any money but they will have an underlying entitlement to it. This could mean that you maybe entitled to Pension Credit as it will include the carers premium in the calculation but it will depend on the figures. https://www.gov.uk/pension-credit/eligibility

    Does your partner claim a disablity benefit theirself? If so what award do they have?

    There's a pension credit calculator here, https://www.gov.uk/pension-credit-calculator fill that in as if you're both state pension age now and it will tell you if there's any entitlement. Do be aware though that benefits will likely increase from April next year and this calculator will only include the current rates.

    Edit to add, please make sure you claim your state pension and report the changes to UC once you reach this age. If you don't claim your state pension, you'll be treated as if you have and Notional Income rules will apply. This means that you will be treated as having that income and it will still be deducted in full from any UC entitlement. See link and scroll to H5150 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1174380/admh5.pdf





    Thanks for your response, Carers allowance has already been registered. UC set us right with carers element. My partner does not claim any disability. 
    This is what I do know: I know I will still get PIP. Myself and my partner will receive state pension. When I retire and I get state pension, I know Universal Credit will end. I believe I will get an extra  £76.40 a week.
    When UC ends, does this mean LCWRA and UC carers element will end?
    Also, as my partner reaches retirement age in May, and I reach it in August, going by your information, "partners state pension will be deducted in full from any UC entitlement. Would it be wiser for my partner to continue working until I reach retirement age?

    This is all very much on my mind at the moment as retirement is fast approaching. I'm just trying to work out how we are going to manage in our retirement years

    Many thanks for your help.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    MartinR said:
    Thanks for your response, Carers allowance has already been registered. UC set us right with carers element. My partner does not claim any disability. 
    This is what I do know: I know I will still get PIP. Myself and my partner will receive state pension. When I retire and I get state pension, I know Universal Credit will end. I believe I will get an extra  £76.40 a week.



    Carers allowance is a different benefit to carers element. Carers element is part of UC but carers allowance isn't.

    You mention receiving an extra £76.40 when you reach state pension age but you're thoughts are not correct i'm afraid. This amount will be the Severe disability Premium (referred to as Severe disability Addition for Pension Credit) unfortunately you will not be entitled to that because your wife doesn't claim a qualifying disability benefit herself.

    MartinR said:

    When UC ends, does this mean LCWRA and UC carers element will end?
    Also, as my partner reaches retirement age in May, and I reach it in August, going by your information, "partners state pension will be deducted in full from any UC entitlement. Would it be wiser for my partner to continue working until I reach retirement age?

    This is all very much on my mind at the moment as retirement is fast approaching. I'm just trying to work out how we are going to manage in our retirement years

    Many thanks for your help.


    When you reach state pension age in August 2024 then yes your UC will then end.

    Your wife can continue to work if she wants to when she reaches state pension age but as i advised, if she doesn't claim her state pension then it will still be deducted in full from any UC entitlement, known as notional income rules. Please see my previous comment for full explanation.
  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    edited October 2023
    Poppy,
    I'm reading the file just now. I'm just trying to take in the notional payments rule. So this means, if she continued to work, they will count what she would have had as a pension, and her actual income into account when working out the Universal Credit!
    So I still need to work out our best options.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited October 2023
    MartinR said:
    Poppy,
    I'm reading the file just now. I'm just trying to take in the notional payments rule. So this means, if she continued to work, they will count what she would have had as a pension, and her actual income into account when working out the Universal Credit!
    So I still need to work out our best options.
    She can continue to work and claim her state pension and it doesn’t affect it. 

    Her earnings will still be treated as earnings and affect your UC in the same way it does now.

    If she doesn’t claim her state pension it will still reduce your UC £1 for £1. For this reason I can’t see why she wouldn’t claim her state pension. 
    How much will her state pension be per week?
  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    I found this on Citizens advice website:

    You'll get LCWRA automatically if you're over State Pension age and getting either:

    • Attendance Allowance
    • Personal Independence Payment (PIP) with the 'enhanced daily living component'
    • Disability Living Allowance (DLA) with the 'highest rate care component'

    You’ll need to wait 3 months to get the extra money.

    You'll get LCW automatically if you're getting either:

    • PIP, but not the enhanced daily living component
    • DLA, but not the highest rate care component

    The DWP should also send you a UC50 form to check if you should be getting LCWRA instead of LCW. If they don’t, call the Universal Credit helpline or request it through your online account.

  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    Poppy
    from next May, she will be due: £203.85 a week, £886.38 a month, £10,636.60 a year!

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited October 2023
    MartinR said:
    I found this on Citizens advice website:

    You'll get LCWRA automatically if you're over State Pension age and getting either:

    • Attendance Allowance
    • Personal Independence Payment (PIP) with the 'enhanced daily living component'
    • Disability Living Allowance (DLA) with the 'highest rate care component'

    You’ll need to wait 3 months to get the extra money.

    You'll get LCW automatically if you're getting either:

    • PIP, but not the enhanced daily living component
    • DLA, but not the highest rate care component

    The DWP should also send you a UC50 form to check if you should be getting LCWRA instead of LCW. If they don’t, call the Universal Credit helpline or request it through your online account.


    That's irrelevant because you said you're already receiving the LCWRA element. This won't change when your wife claims her state pension. You will continue with the LCWRA element being included in your maximum UC entitlement up until you reach state pension age.

    Your UC can't continue once you reach state pension age yourself because you will both be this age and UC is a working age benefit.
    MartinR said:
    Poppy
    from next May, she will be due: £203.85 a week, £886.38 a month, £10,636.60 a year!


    £203.85 x 52 divided by 12 = £883.35/month so this is how much would be deducted from your UC. 

    If she continues to work and receives earnings above the work allowance then that will also reduce your UC by 55%.


  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    Thanks, Poppy. That's all been very helpful. I copied those figures from the Gov website. The figures don't tie in between weekly, monthly, etc.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited October 2023
    You're welcome. Full new State Pension this year is £203.85/week. It's paid every 4 weeks, not monthly.  The amount will increase from April next year. You can both have a State Pension forecast here. https://www.gov.uk/check-state-pension For UC purposes you need to work out the monthly money, as shown in my last comment.

    When you reach state pension age, there maybe no entitlement to Pension Credit but it will depend on how much your State Pension is per week.

    Are you claiming for help with any rent?


  • MartinR
    MartinR Online Community Member Posts: 14 Listener
    Hi Poppy. With your information, I think I've managed to work it out. I've already checked our pension forecast. We own our home with no mortgage. I went onto Turn2us last night and used their calculator. It would appear we are not entitled to anything else. For my other half, she has over 35 years contributions, so she will get the full state pension. I have a few gaps in my contributions. The pension calculator indicates I'll get £163.06 a week (I assume this is before the increase coming next year).  It seems best for my partner to continue working and claim her pension "as you stated, they would take the full pension from the UC".
    It is a bit of a minefield, and I need experience to understand things. Thankfully, you have the knowledge which has helped me a great deal to piece this together.
    If you can pass on any other information that you think may be useful to me, I'd be very grateful!

    Thank you.
     

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Based on those figures it’s unlikely you will be entitled to any Pension Credit once you’re both state pension age. Though you can use a Pension Credit calculator nearer to the time when you reach that age.

    Please don’t forget that each of you will need to make sure you claim your State Pension. See link https://www.gov.uk/new-state-pension/how-to-claim

  • Jimm_Alumni
    Jimm_Alumni Scope alumni Posts: 5,717 Championing
    Hi @MartinR, I'm really glad you got the help you were looking for! This is what the community is all about :)

Categories