Friday, 27 March 2015

Blow your pension and lose benefits

Here's the Department for Work and Pensions warning about squandering your pension savings and then expecting to be able to fall back on state benefits:

“Means-tested benefits take into account how much income and capital a household has. 

“And if people are found to have deliberately spent their pension in order to get means-tested benefits, then their benefit is reduced accordingly.”

It's understood that if money is released from a pension pot and then spent, these "deprivation rules" may apply regardless of age.

·         Benefits affected include:
·         Pension Credit
·         Housing Benefit
·         Jobseeker’s Allowance (income based)
·         Employment and Support Allowance (income related)
·         Income Support
·         Universal Credit 

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