Unlocking pension cash could mean missing out on benefits and other entitlements later in life, experts warn More people could feel under pressure to unlock their pension

- Advertisement -


Experts warn that pension savers may inadvertently cut off their entitlement to certain benefits and other financial help by releasing cash from their retirement pot.

- Advertisement -

With an imminent cut in Universal Credit payments and the end of the furlough scheme, they may be turning to their pensions for financial aid, consultants LCP (Lane Clark & ​​Peacock) and technology firm EngageSmarter reports.

But when states withdraw money from the pension pot under the pension age, it can affect their benefit eligibility in two main ways.

advertisement

If someone takes a lump sum or receives regular income from their pension, it could potentially affect their eligibility for means-tested benefits such as Universal Credit or Pension Credit.

- Advertisement -

If they end up with more savings, this could have an impact when assessed for profit.

He said people with a capital of more than £16,000 are ineligible for Universal Credit.

And if they use their pension to buy regular income through a retirement annuity, this income can be deducted from their benefit income.

The people behind the research said a new website tool – www.pensions-and-benefits.uk/ – has been launched to give savers an idea of ​​how they may be affected.

.

- Advertisement -
Mail Us For  DMCA / Credit  Notice

Recent Articles

Stay on top - Get the daily news in your inbox

Related Stories