Pension contributions while on benefits

[Shopassistant]

I’m disabled, I work part time in a low-paying job, and I receive some benefits.

I have a basic workplace pension, the one the government made companies set up. I live quite frugally, and could afford to increase my contribution a bit, which my workplace would match. I earn less than £1k a month, so we’re only talking small amounts here.

What I’m wondering is if the DWP would consider this me depriving myself of assets? Is any money in a pension considered as ‘savings’?

Pension money is not counted as savings and is not deprivation of assets.

I would think carefully about this. Some pensioners have been frugal for years to scrape together a small pension which just takes them over the pension credit limit. They would probably have been better off not bothering. Please don’t make your life harder than it needs to be and then find that it was all for nothing.

The 'pension credit issue' may not apply any more. Eg if the OP has sufficient NI contributions for a full state pension, she might not qualify.

Housing status could be another factor - I don't know if there is help with rent if income is low. But obviously if the OP owns her own home, this isn't a consideration.

Plus whether the benefits are income related or due to disability - not all are means tested. Plus a disabled pensioner could be entitled to attendance allowance.

OP you could use a benefit calculator to look to see what benefits you would be entitled to, according to current rules, if you were already above pension age. Of course, entitlements may change, but it might help you make a decision.

But if you find that you're naturally building up savings, because you don't spend all your income and especially if your savings are building up to a level where you may start to lose UC, putting more money in a pension could be a good thing to do.

Especially as it could give you choices when you are older, eg if you find you need to stop working, an increased pension may allow you to do this.