Pension lump sum

[Lindi]

Hi I would like to draw down the 25% tax free amount on a small pension pot that I have or even the whole sum as a weekly pension would be negliable. I am 59 years of age. How will this income be assessed in respect of my carers allowance? Thanks

[Chris From The Gulag]

No effect.

CA is NOT means tested.

If , however , additional benefits are paid , the income related ones , those could be effected if you exceed the capital limits pertaining to each flavour of benefit.

https://www.entitledto.co.uk/help/savings

[bowlingbun]

DON'T do this until you have spoken to the Carers UK helpline - email is better than phoning.

[Lindi]

Thanks all very complicated

[jenny lucas]

I agree, most definitely get the experts on Carers UK to check this.

I hear what Chris is saying, as the private pension income won't be 'earned income' (ie, a wage for doing a job), but for all that, I would get it very, very clear whether or not the DWP can use this 'unearned income' (ie, private pension) to give them an excuse to stop paying out Carers Allowance to you. In these days of cash-strapped government departments, they will do whatever they can get away with to save themselves money.

Make sure you bank the 25% lump sum safely!!! (And if it is invested, even if only in a savings account, again, make sure than any income you take from the interest/dividends is also not going to cause CA to be lost....)

I would check with the DWP itself, and get it in writing from them that yes, you can have the lump sum AND a drawdown income from your private pension, and it won't affect your eligibility for CA.

[Lindi]

Hi Jenny Thanks these were the concerns I was having I will get it checked out and post what they say

[susieq]

The only pension that affects Carers Allowance is your State Pension - when you start claiming that then CA stops. They don't count a private pension - I think they must view it as a form of "savings"!!!!!

[jenny lucas]

That's a mercy! Mind you, it's iniquitous that the state pension affects Carers Allowance (or any other benefits).

State pensions are NO different from private pensions! We pay in all our working lives through National Insurance, just as if we were paying into a private pension.

[Chris From The Gulag]

..... except in the eyes of the DWP and THEIR " Double benefit " rule ... smoke and mirrors job ... remains unchallenged after ... 40+ years ?

[jenny lucas]

STATE PENSIONS ARE NOT A BENEFIT!

I would gladly take mine and SHOVE IT DOWN THE DAMN THROAT of the Work and Pensions' Minister!!!!!!!