I’m trying to find out whether a stakeholder pension would affect benefits payments once you reach 55, even if you choose not to withdraw any money from the pension at that stage. According to the Citizens Advice website, only the money you take out affects benefit payments, not the money you’re actually entitled to. Is this correct as I’ve seen conflicting information on another website?
Thank you for your question, it is a complex area and it would depend on what benefits you are taking about, income based benefits on contribution based benefits.
Benefits are not usually affected until you are in receipt of the pension or you reach state pension age, we would advise you to seek help from your local Welfare Rights Organisation; advicelocal.uk they will be able to take all your circumstances into consideration.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
