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ESA and private pension
- hartlepool1945
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6 years 8 months ago #194340 by hartlepool1945
Replied by hartlepool1945 on topic ESA and private pension
This was all a fair while back: anyone have a recent update to essentially the same question? - I'm on CB-ESA and took a small drawdown from my pension pot, which has caused alarm bells to ring at DWP - so the question now is - what is the weekly disregard and how does it work currently? If I'm on CB why should it interest DWP anyway?
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- gillyk59
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6 years 8 months ago #194350 by gillyk59
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by gillyk59 on topic ESA and private pension
The first £85 per week of personal/occupational pension is disregarded and then your CB ESA is reduced by 50p for each £ over and above the £85.00
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- Gordon
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6 years 8 months ago #194352 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA and private pension
hartlepool
We can't give detailed financial advice on the forum, I recommend that you get face to face advice from a trained advisor before you make any decision.
If you take the pension as a lump sum then it should be treated as capital and have no effect on your ESA(CB), if you receive regular payments from your pension then there is an £85/week disregard followed by a £1/week deduction from your ESA(CB) payments for every £2 of pension in excess of the £85.
Even if your pension would not result in a deduction from your ESA(CB) you still need to inform the DWP of the payments.
Gordon
We can't give detailed financial advice on the forum, I recommend that you get face to face advice from a trained advisor before you make any decision.
If you take the pension as a lump sum then it should be treated as capital and have no effect on your ESA(CB), if you receive regular payments from your pension then there is an £85/week disregard followed by a £1/week deduction from your ESA(CB) payments for every £2 of pension in excess of the £85.
Even if your pension would not result in a deduction from your ESA(CB) you still need to inform the DWP of the payments.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: hartlepool1945
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- sheeps68
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6 years 8 months ago #194374 by sheeps68
Replied by sheeps68 on topic ESA and private pension
Hartlepool
From personal experience you can get around £1200 PCM in pension before you do not get any ESA at all. Even then remember you will still get your NI stamp paid so still very worthwhile.
From personal experience you can get around £1200 PCM in pension before you do not get any ESA at all. Even then remember you will still get your NI stamp paid so still very worthwhile.
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- nobby66
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6 years 8 months ago #194450 by nobby66
Replied by nobby66 on topic ESA and private pension
Hi
Am in similar position..got employment pension started and lump sum at 60 and sent dwp via job centre a copy of award letter ..they calculate the reduction and then check with u every year re any increases and adjust. Roughly £120 a month reduction on ESA support group amount on a pension of about £800 pm.
Make sure u adjust ur tax codes when u have the new figures sorted.
Am in similar position..got employment pension started and lump sum at 60 and sent dwp via job centre a copy of award letter ..they calculate the reduction and then check with u every year re any increases and adjust. Roughly £120 a month reduction on ESA support group amount on a pension of about £800 pm.
Make sure u adjust ur tax codes when u have the new figures sorted.
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