Savings

General
1

I am surrendering a pension due to my incapacity. I get a lump sum of about £6280 and £666 every year thereafter. I know ESA deduct about £2 a week but does anyone know how long for? I also housing benefit and council tax benefit.

Not really sure if this is good idea or not, I just fancy using the lump sum to travel whilst still can!

2

Hi Leanne,

If you have noticed in the news recently, the government plans to allow total freedom on how you take your pension from April 2015.

So you could take 25% as a tax free lump sump and all the rest at your taxed rate. You no longer will meed an Annuity.

Or you could take 10% for example then 15% the year after ,tax free. Then the rest whenever you want. You will not be forced to take the same amount each year. This may avoid ESA cuts.

You should wait for 6 months in my opinion, although I don't know your full situation.

Good luck

3

I had to take early retirement due to my kind of Ataxia so I get a small pension,ESA does take into consideration your pension-I get both.The lump sum went on the conservatory.It's a minefield isn't it?

4

If you are in Income Related ESA then pension will be taken into account. If your condition is bad enough then you may be able to be moved to the Support Group ESA where income is not taken into account.

Marie Turner said:

I had to take early retirement due to my kind of Ataxia so I get a small pension,ESA does take into consideration your pension-I get both.The lump sum went on the conservatory.It's a minefield isn't it?

5



mark said:

Hi Leanne,

If you have noticed in the news recently, the government plans to allow total freedom on how you take your pension from April 2015.

So you could take 25% as a tax free lump sump and all the rest at your taxed rate. You no longer will meed an Annuity.

Or you could take 10% for example then 15% the year after ,tax free. Then the rest whenever you want. You will not be forced to take the same amount each year. This may avoid ESA cuts.

You should wait for 6 months in my opinion, although I don't know your full situation.

Good luck

6

Thanks for the heads up Mark

7


Oh yes it certainly is Marie
Marie Turner said:

I had to take early retirement due to my kind of Ataxia so I get a small pension,ESA does take into consideration your pension-I get both.The lump sum went on the conservatory.It's a minefield isn't it?