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Pension Affect Benefits?
- Angela
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9 years 8 months ago #139624 by Angela
Cauda Equina Syndrome (CES);
- Poor mobility
- Back, leg and feet pain
- Numbness in saddle area, top back of legs & vertical half of entire left leg
- Double incontinence
- Catheter use
- Recurring urine infections
- Problems with left heel due to gait as a result of poor mobility
Pension Affect Benefits? was created by Angela
Good evening
I am currently in receipt of DLA (higher rate mobility component) and Income Related ESA (Support Group). I moved into a rented flat on Monday of this week and am in the process of applying for Housing Benefit (LHA) and Council Tax Reduction.
Although I am not of retiring age, I have recently been made aware that I can access my pension (under the new triviality rules) due to my being unable to work again, and can take it as follows:
25% tax free - £6,000
The full amount (25% of which would be tax free) - £18,000
Pension instalments (annuity) – this is not something I would consider at the moment[
This would be a huge help to me having just moved into my own accommodation after a period of over 10 years with my parents, but I don’t want to risk any of my benefits.
What I’d like to know is if I were to take any of the above, would any or all of my benefits be affected?
Many thanks in advance
I am currently in receipt of DLA (higher rate mobility component) and Income Related ESA (Support Group). I moved into a rented flat on Monday of this week and am in the process of applying for Housing Benefit (LHA) and Council Tax Reduction.
Although I am not of retiring age, I have recently been made aware that I can access my pension (under the new triviality rules) due to my being unable to work again, and can take it as follows:
25% tax free - £6,000
The full amount (25% of which would be tax free) - £18,000
Pension instalments (annuity) – this is not something I would consider at the moment[
This would be a huge help to me having just moved into my own accommodation after a period of over 10 years with my parents, but I don’t want to risk any of my benefits.
What I’d like to know is if I were to take any of the above, would any or all of my benefits be affected?
Many thanks in advance
Cauda Equina Syndrome (CES);
- Poor mobility
- Back, leg and feet pain
- Numbness in saddle area, top back of legs & vertical half of entire left leg
- Double incontinence
- Catheter use
- Recurring urine infections
- Problems with left heel due to gait as a result of poor mobility
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- Gordon
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9 years 8 months ago #139634 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Pension Affect Benefits?
Angela
DLA is not effected by savings or income.
As your ESA is Income Related it will be effected in two ways depending on how you take your pension.
If you take a lump sum then this will be treated as capital. There are two limits for savings and assets (the two are combined), if they exceed £6000 then your ESA will be reduced by £1/week for every £250 in excess of £6000. So if you have £8000 then the deduction will be £8/week (£8000 - £6000 = £2000 / £250 = £8).
The second limit is £16,000, if your assets and savings exceed £16,000 then payment of your ESA will cease until you have less than this, it is important to note that you remain entitled to ESA as long as you continue meet the criteria and you will be paid NI Credits.
The second area is if you receive any regular payments from the pension, these will be treated as income and will reduce your ESA £ for £.
Gordon
DLA is not effected by savings or income.
As your ESA is Income Related it will be effected in two ways depending on how you take your pension.
If you take a lump sum then this will be treated as capital. There are two limits for savings and assets (the two are combined), if they exceed £6000 then your ESA will be reduced by £1/week for every £250 in excess of £6000. So if you have £8000 then the deduction will be £8/week (£8000 - £6000 = £2000 / £250 = £8).
The second limit is £16,000, if your assets and savings exceed £16,000 then payment of your ESA will cease until you have less than this, it is important to note that you remain entitled to ESA as long as you continue meet the criteria and you will be paid NI Credits.
The second area is if you receive any regular payments from the pension, these will be treated as income and will reduce your ESA £ for £.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Angela
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- bro58
9 years 8 months ago - 9 years 8 months ago #139643 by bro58
Replied by bro58 on topic Pension Affect Benefits?
Hi A,
There are also similar rules with respect to capital, assets, savings and household income for receipt of HB and Council Tax Support, so you should also consider that.
Further, if you lose entitlement to payment of your IR ESA, you will also lose your other "passported benefits" such as free prescriptions and dental care, full HB entitlements, CTS, etc !!
If you are to take up your pension option, you should be aware that it may not always be a straight forward transition when reporting your Change of Circumstances to DWP, see : This Topic from another member.
bro58
There are also similar rules with respect to capital, assets, savings and household income for receipt of HB and Council Tax Support, so you should also consider that.
Further, if you lose entitlement to payment of your IR ESA, you will also lose your other "passported benefits" such as free prescriptions and dental care, full HB entitlements, CTS, etc !!
If you are to take up your pension option, you should be aware that it may not always be a straight forward transition when reporting your Change of Circumstances to DWP, see : This Topic from another member.
bro58
Last edit: 9 years 8 months ago by bro58.
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- Angela
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9 years 8 months ago #139660 by Angela
Cauda Equina Syndrome (CES);
- Poor mobility
- Back, leg and feet pain
- Numbness in saddle area, top back of legs & vertical half of entire left leg
- Double incontinence
- Catheter use
- Recurring urine infections
- Problems with left heel due to gait as a result of poor mobility
Replied by Angela on topic Pension Affect Benefits?
Gordon and Bro58, many thanks for your replies.
Well I think this is a no brainer, especially after reading the recent topic from another member; I don’t want to jeopardise any of my benefits, it was difficult enough trying to get them in the first place and I’m still awaiting a decision on Housing Benefit and Council Tax Reduction, so the pension can stay where it is.
Many thanks once again for your advice.
A.
Well I think this is a no brainer, especially after reading the recent topic from another member; I don’t want to jeopardise any of my benefits, it was difficult enough trying to get them in the first place and I’m still awaiting a decision on Housing Benefit and Council Tax Reduction, so the pension can stay where it is.
Many thanks once again for your advice.
A.
Cauda Equina Syndrome (CES);
- Poor mobility
- Back, leg and feet pain
- Numbness in saddle area, top back of legs & vertical half of entire left leg
- Double incontinence
- Catheter use
- Recurring urine infections
- Problems with left heel due to gait as a result of poor mobility
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