- Posts: 123
× Members
Capital from pension
- Gaddy
- Offline
Less More
3 weeks 17 hours ago #297357 by Gaddy
Replied by Gaddy on topic Capital from pension
I have done this, taken a lump sum from a private pension pot. It didn't take me over the 6k at the time but I notified DWP when it went into my account anyway. Sometime after that I received a telephone call from the DWP Fraud team to ask if I was receiving a monthly income of the 3.5k!!. My letter made it quite clear it was a one off lump sum withdrawal and the HMRC notification they received must have stated that. Regardless I still had to send bank statements to prove it. So even if you act completely honestly and within the rules, some over vigilant clerk from the fraud dept can insist you prove it.
Gaddy
Gaddy
- David
- Offline
Less More
- Posts: 785
3 weeks 16 hours ago #297358 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Capital from pension
Hi Gaddy,
Thanks for sharing your experience.
If you do have any savings that are earning interest in the bank or Building Society then this amount of interest is disregarded by the DWP. If your savings are over £6000 then the actual interest you receive is not taken into account by the DWP . Instead they use their own tariff income of a £1 deduction from Benefit for every £250 of savings over £6000.
David
Thanks for sharing your experience.
If you do have any savings that are earning interest in the bank or Building Society then this amount of interest is disregarded by the DWP. If your savings are over £6000 then the actual interest you receive is not taken into account by the DWP . Instead they use their own tariff income of a £1 deduction from Benefit for every £250 of savings over £6000.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Gaddy
- Gaddy
- Offline
Less More
- Posts: 123
3 weeks 16 hours ago #297359 by Gaddy
Replied by Gaddy on topic Capital from pension
Thanks David,
I am now over the 6k limit having received a small inheritance a few years back so I am experiencing the Dwp's tariff income.
I gather once I become a pensioner( a year to go) the limit changes to savings over 10k and at £1 per £500.
I am now over the 6k limit having received a small inheritance a few years back so I am experiencing the Dwp's tariff income.
I gather once I become a pensioner( a year to go) the limit changes to savings over 10k and at £1 per £500.
- David
- Offline
Less More
- Posts: 785
3 weeks 16 hours ago #297360 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Capital from pension
Hi Gaddy,
That is correct about savings and Pension Credit. Remember though if you have a partner both of you have to be over State Pension age to qualify for Pension Credit. Otherwise you are what is termed a Mixed Age Couple.
www.gov.uk/pension-credit/eligibility
David
That is correct about savings and Pension Credit. Remember though if you have a partner both of you have to be over State Pension age to qualify for Pension Credit. Otherwise you are what is termed a Mixed Age Couple.
www.gov.uk/pension-credit/eligibility
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Gaddy
- tigerblue
- Topic Author
- Offline
Less More
- Posts: 25
2 weeks 6 days ago #297366 by tigerblue
Replied by tigerblue on topic Capital from pension
Gaddy
Thanks. I’ve done it before but for a very large amount (to buy a flat) so knew I’d have all the impact!
Think I’ll go for it and deal with the calls etc.
Chris
Thanks. I’ve done it before but for a very large amount (to buy a flat) so knew I’d have all the impact!
Think I’ll go for it and deal with the calls etc.
Chris
The following user(s) said Thank You: Gaddy, David
Moderators: Gordon, Gary, BIS, Catherine, Wendy, Kelly, greekqueen, peter, Katherine, Super User, Chris, David