Private Pension and ESA?

[jazztheman]

I am currently claiming Joint ESA (Support Group) for myself and my wife who is disabled, I am her carer.

I am due for retirement in 18 months time,

 

today I received a letter from a private pension from a company that I worked with a few years ago. 

The letter notified me that this private pension would start paying monthly payments of £80 per month from December 2019 when I am 65.

 

Being on ESA I don't want to go onto Universal Credit if at all possible. 

Will this private pension trigger a change for Universal Credit to be applicable? 

What would be the situation if I deferred this private pension until my official retirement age of 66?

[stu007]

Sadly it may as it would as the Private Pension would be classed as an Occupational Pension and taken into account.

 

I myself am disabled and have a two different pensions one they cannot touch but the other Pension they can as they class it as Private/Occupational Pension and it is taken into account. 

 

IMO I would advise that you inform them of this change as it is a change in circumstances just so you are on the right side of DWP you don't want to give then a reason to hit out with sanctions.

 

Whether they would reassess you for universal credit or just reassess your present claim only is really in DWPs hands

[honeybee13]

Do you know what type of pension it is, Jazz? Is it with an insurance company?

 

HB

[unclebulgaria67]

Would be counted as unearned income, as it is not related to current employment.  So it needs to be advised to ESA and they will take it into account.

 

See this link  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778262/admh5.pdf

 

Don't need to change to UC. You would stay on ESA, until DWP begins the managed migration process. If you both reach state pension credit age before UC migration, then you simply claim relevant retired age benefits.  If your wife was a lot younger than yourself, then you might be dragged into claiming UC on migration, as mixed age couples (one of pension credit age and other below) have to claim UC, unless the disabled person is getting the SDP addition.

[jazztheman]

It's not with an insurance company it's a works pension scheme.

[honeybee13]

Thank you. So it sounds like an occupational pension.

 

HB

[jazztheman]

Bit of an update,

another private pension with another old company turned up this week with a pension pot value of around £10k the previous pension company had a pension pot of around £26k. Both companies have the option to do nothing and leave the pots alone until I reach my official state pension age in around 18 months time, which is the option I would prefer to do.

 

Age UK and the Money Advice Service are stating that because I am below state pension age and not taking income from the pension pots the DWP does not have to be informed until I reach state pension age.

 

Does this information seem correct?

I don't want to break any DWP rules. 

[dx100uk]

correct.

[dx100uk]

if you popback to UB67's post and that link

read from h5156

if you are entitled to it, [as you say above dec 19] even though you may defer it you appear to me to have to declare it for UC purposes?

[unclebulgaria67]

If below state pension age and you don't receive any private pensions money you don't have to declare.

 

As soon as you reach state pension age, you have to declare to DWP, even if you decided to delay receiving it.

[dx100uk]

why is that doc so diff to understand..thanks.

so the only bit I missed out was reaching state pension age

which I found to be very doubt dutch in some of the clauses.

 

[jazztheman]

The Age UK information is available from here http://tinyurl.com/y38n39bx  which is much easier to understand, although some of the information seems to conflict with other advisory organisations.

[ericsbrother]

are the 2 pots still actively invested or frozen? If the latter you could still transfer then into another active scheme without ever handling the money but get a bit of capital growth for the next 18 months.

[jazztheman]

The two pension companies are waiting for my decision on what to do with them. I will more than likely request to leave the both pots alone until I reach my state pension age and then take out an annuity.

[honeybee13]

Hi.

 

You could speak to Pensions Wise about what to do with your pensions now or in a couple of years time, to understand the options, because you don't have to take an annuity if it doesn't suit you. Pensions Wise are independent and free.

 

https://www.pensionwise.gov.uk/en

 

HB