Private pension

Hi,

I’m out of the office at the moment and looking for some quick advice. My client has a private pension that has been available to him since he turned 55 but he chose not to take it. My understanding is that the DWP cannot take this into account until he reaches retirement age. As this has now increased, will it still be treated as capital when he reaches 65 or when he reaches SP age (66)?

Thanks

It will never be treated as capital, in the sense normally used for benefits.

It’s ignored for working age benefits but taken into account for Pension Credit, where there is a complex calculation of notional income used.  See https://benefitsinthefuture.com/notional-income-from-pensions-too-notional-for-some-advisers/.

In MAC cases the older partner will still have this assessment in Universal Credit, see Reg. 74(1)(3)

That’s just what I needed Gareth, thank you.

Just FYI, we try to explain these rules in our Pension Freedom and benefits factsheet. Section 5 covers WAB’s.

Which is an opportunity to say thanks to AgeUK for the excellent factsheets you produce..

Thanks Ian, appreciate that.

Age UK’s amazing monthly ‘benefits bulletin’ is worth a shout too!!!!!!!

Thanks Andy, I’ll pass that onto Liam.