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TOPIC: SIPP AND ESA

SIPP AND ESA 1 month 1 week ago #195091

Please can you advise. I am in the support group on income related. I recently became aware of a workplace pension which I did not know I had. I am aged 56 and so the pension freedom applied. A financial adviser has put it in a SIPP for me and has arranged me to receive £6000 per year via £500 per month. Is this okay to do. Many thanks.

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SIPP AND ESA 1 month 1 week ago #195104

trainingisgood wrote: Please can you advise. I am in the support group on income related. I recently became aware of a workplace pension which I did not know I had. I am aged 56 and so the pension freedom applied. A financial adviser has put it in a SIPP for me and has arranged me to receive £6000 per year via £500 per month. Is this okay to do. Many thanks.


Has this been actioned yet? If not then get face to face to face advice before proceeding as a matter of urgency.

Yes, it will effect your ESA(IR), the pension will be deducted £ for £ from your ESA(IR) and any other means tested benefit that you might receive, such as Housing Benefit.

Gordon

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Nothing on this board constitutes legal advice - always consult a professional about specific problems

SIPP AND ESA 1 month 1 week ago #195108

Many thanks Gordon

What would be the best way to proceed. I have been told by DWP that I can take up to £6000 and the benefit would not be affected. Are you saying that the £500 per month which will equate to £6000 is not a good idea. I do need the money now not sure what to do. Surely the IFA should have known this. Thanks

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SIPP AND ESA 1 month 1 week ago #195110

trainingisgood wrote: Many thanks Gordon

What would be the best way to proceed. I have been told by DWP that I can take up to £6000 and the benefit would not be affected. Are you saying that the £500 per month which will equate to £6000 is not a good idea. I do need the money now not sure what to do. Surely the IFA should have known this. Thanks


We can't give detailed financial advice on the forum so you really need to get face to face advice, do an internet search for "welfare advice" with your postcode, town or county.

If you take the money as a one off payment then it should be treated as capital, although it will still effect your ESA(IR), if your total savings and assets exceed £6000 then there is a £1/week deduction from your ESA for every £250 in excess.

If you take it as a regular payment then there is a good chance that the DWP will treat it as income and deduct it accordingly.

Unless you have a statement in writing from the DWP that it will not have any impact on your ESA, then anything you have been told be them is of no value, especially if the statements were made by the call centre staff who have no authority in this matter at all.

Gordon
The following user(s) said Thank You: trainingisgood

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