Pension Dilemma

Hello

My client is aged 58 and on IB JSA. He has an occupational pension pot worth £25,000, and would like to access the 25% lump sum because he has no savings. If he were to buy an annuity he would get about £1000pa which I think would be deducted from his benefit pound for pound.

However, I have been advised by his pension provider that the remaining 75% could be ‘crystalised’ and put ‘on hold’ until he is 65. He could then buy the annuity, and receive the payments in addition to his State Pension. If he took this action, would he have to notify JSA, (and eventually PC) and if so, how would it be treated?

Thanks for any help.

Beverley

Income from occupational pensions and personal pensions is taken fully into account for JSA (IB). Payments from a personal pension or occupational pension, when the person is under the qualifying age for Pension Credit, cannot not be treated as notional income available on application.