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Pension Credit
2 Answers
I receive pension credit for myself and my wife .
My wife has the opportunity to transfer her small private pension (£62 month) into a cash sum in the region of £11500 , this would be very useful to pay off a few debts (bank loan , credit cards etc , to a sum of £6000).
My question is -- if she takes the lump sum , how will this affect the pension credit , will it be classed as income or savings .
Thanks in advance .
My wife has the opportunity to transfer her small private pension (£62 month) into a cash sum in the region of £11500 , this would be very useful to pay off a few debts (bank loan , credit cards etc , to a sum of £6000).
My question is -- if she takes the lump sum , how will this affect the pension credit , will it be classed as income or savings .
Thanks in advance .
Answers
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It will almost certainly be classed as savings. On Pension Credit you are allowed £10000 savings without it affecting the amount of the credit paid, & you are generally allowed to use savings to pay debts which are due without penalty. The £62 p mth will be taken into account as income at present, & so reduce the Pension Credit amount. You need to confirm...
20:26 Sun 10th May 2015
It will almost certainly be classed as savings.
On Pension Credit you are allowed £10000 savings without it affecting the amount of the credit paid, & you are generally allowed to use savings to pay debts which are due without penalty.
The £62 p mth will be taken into account as income at present, & so reduce the Pension Credit amount. You need to confirm whether the amount of the credit would be increased if your wife takes the lump sum.
Contact your local CAB for confirmation, & for any other advice.
On Pension Credit you are allowed £10000 savings without it affecting the amount of the credit paid, & you are generally allowed to use savings to pay debts which are due without penalty.
The £62 p mth will be taken into account as income at present, & so reduce the Pension Credit amount. You need to confirm whether the amount of the credit would be increased if your wife takes the lump sum.
Contact your local CAB for confirmation, & for any other advice.
1 to 2 of 2
