This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

savings and government pension

jodevizes
Posts:6
Joined:Wed Sep 18, 2013 2:41 pm
savings and government pension

Postby jodevizes » Tue Nov 17, 2015 11:05 am

Hi, I am on a pension credit with a state pension at the lowest rate. I am being lent £100000 as an advance on an inheritance but wonder how this would affect my pension. I understand that I am allowed £10000 in savings but what happens if I go above this.
The reason for the loan is to buy a house abroad where I am intending to move to, but I may rent for a year before committing to buy and so would put £80000 in a savings account and use the rest to pay for the move, get a car and some furniture.

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: savings and government pension

Postby section 44 » Tue Nov 17, 2015 11:17 am

I understand that I am allowed £10000 in savings but what happens if I go above this.
... presumably you lose some, or all, of your pension credit ...

jodevizes
Posts:6
Joined:Wed Sep 18, 2013 2:41 pm

Re: savings and government pension

Postby jodevizes » Tue Nov 17, 2015 11:54 am

Really? They would take it all away?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: savings and government pension

Postby bd6759 » Tue Nov 17, 2015 12:24 pm

Probably. Pension credit is to support those who don't have much money. If you have £100,000 in the bank, you don't really fall into that category.

jodevizes
Posts:6
Joined:Wed Sep 18, 2013 2:41 pm

Re: savings and government pension

Postby jodevizes » Tue Nov 17, 2015 12:29 pm

Would I loose the whole pension or just the credit part of it?

jodevizes
Posts:6
Joined:Wed Sep 18, 2013 2:41 pm

Re: savings and government pension

Postby jodevizes » Tue Nov 17, 2015 12:30 pm

Oh and even it is a loan and not a gift?

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: savings and government pension

Postby section 44 » Mon Nov 23, 2015 3:32 pm

If you have £100,000 in the bank, you don't really fall into that category
Wouldn't you fall in this category irrespective of:
even it is a loan and not a gift?
but in any event presumably its only a timing distinction


Return to “Savings & Investments, Pensions & Retirement”