I have an old pension worth approx £8,000 Iam on incapacity benefit who can claim it,myself or the goverment?

Question

I have an old pension worth approx £8,000 Iam on incapacity benefit who can claim it,myself or the goverment?

Answer 1

I would think you can claim it yes but you would have to inform benefits and of course they would take it off your benefit payments. give you it in one hand and take it out the other dont they.

good luck

Tracey xx

but of course, you could take the risk and not declare it.

Answer 2

If a person's entitlement to Incapacity Benefit starts on or after 6 April 2001, her/his benefit may be reduced if s/he receives one of the following at over £85 gross per week:

personal pension;



occupational pension;



public service pension;



permanent health insurance arranged by an employer which provides payments in connection with ill health or disability after her/his employment ends.



However, if s/he contributed more than 50 per cent of the premiums, the amount s/he receives from this pension will be ignored.

Other types of pension including one off lump sum payments are ignored. If a person is entitled to the highest rate of DLA care component, all pension payments are ignored.

If a person has a gross pension of over £85 per week, Incapacity Benefit will be reduced by half of the difference between the pension and £85.

Example

Pension                       £95 per week

Difference                   £95 less £85 = £10 x 50% = £5

The reduction in Incapacity Benefit is £5.

Answer 3

A Pension fund of £8,000 will buy an annuity (Pension) of less than £540 a year (£45 a month) .. this will count as Income and may effect any 'means tested' benefits you are getting.

You may be better off taking the maximum Tax Free lump sum (25% = £2000) which you can then immediately spend eg. to clear debts  - this will reduce your Pension 'pot' to £6000 and your Pension payments to less than £35 a month ..

I would suggest seeing if your can talk to some-one at Citizens Advise ..