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The right to receive a payment in the future - personal pension
Re: The right to receive a payment in the future - personal pension
We have a client approaching state retirement who from we can tell has a he pays into personal pension he can cash when he is 75 i.e. the letter says payable at 75 (no lump sum just regular payments).
looking at CPAG handbook 2022/23 page 507 and following the notes SPC regs 2002 Schedule 5 para 22 and the note pages 847 and 852 - Sweet and Maxwell 2021/22 vol II and IS (GEN) regs 1987 Schedule 10 para 23 Sweet and Maxwell vol V 2021/22 pages 685 and note 714.
It looks like it is disregarded, are we right coming to that conclusion?
[ Edited: 4 May 2023 at 01:45 pm by Andyp5 Citizens Advice Bridport & District ]Is that definitely when it comes payable (at 75) rather than the age by which it must be claimed? Seems quite late for a personal pension scheme and I’m thinking about notional income issues if the scheme age is actually younger and it isn’t claimed.
But, putting that to one side, I would otherwise agree with your conclusion. It’s a personal pension and therefore the capital value of the right to receive a future payment is disregarded.
Is that definitely when it comes payable (at 75) rather than the age by which it must be claimed? Seems quite late for a personal pension scheme and I’m thinking about notional income issues if the scheme age is actually younger and it isn’t claimed.
But, putting that to one side, I would otherwise agree with your conclusion. It’s a personal pension and therefore the capital value of the right to receive a future payment is disregarded.
Regarding your first point it does sound counter intuitive for lots of obvious reasons. Colleague Kate is trying to ascertain that point. From the paperwork 75 was the age the client selected whether that is a deferral we’ve have to see what Kate finds out from the provider?
Regarding the conclusion i.e. disregard phew thanks!!!
Regarding your first point it does sound counter intuitive for lots of obvious reasons. Colleague Kate is trying to ascertain that point. From the paperwork 75 was the age the client selected whether that is a deferral we’ve have to see what Kate finds out from the provider?
You know that’s a good point, does anyone know what the DWP view is on pension schemes where you can vary the retirement age at will? Just had a look at mine and I could update it with a couple of clicks from 68 where it is at the moment (and was by default as I’ve not changed it) to anything between 55 and a 100!
Regarding your first point it does sound counter intuitive for lots of obvious reasons. Colleague Kate is trying to ascertain that point. From the paperwork 75 was the age the client selected whether that is a deferral we’ve have to see what Kate finds out from the provider?
You know that’s a good point, does anyone know what the DWP view is on pension schemes where you can vary the retirement age at will? Just had a look at mine and I could update it with a couple of clicks from 68 where it is at the moment (and was by default as I’ve not changed it) to anything between 55 and a 100!
The notional income aspect
https://www.casemine.com/judgement/uk/5a8ff83e60d03e7f57ebcfbe
Sweet & Maxwell 2021/22 vol II pages 803 -806
[ Edited: 4 May 2023 at 05:03 pm by Andyp5 Citizens Advice Bridport & District ]See my blog of a few years ago https://benefitsinthefuture.com/notional-income-from-pensions-too-notional-for-some-advisers/
See my blog of a few years ago https://benefitsinthefuture.com/notional-income-from-pensions-too-notional-for-some-advisers/
Thanks Gareth, I must pay more attention to your blogs!!!!!