Pension advice please.

[EarthMotherImNot]

Dh has a pension from when he contracted out of the state pensions (SERPS) he then transferred this to Legal and General.

They have told him he can take a lump sum from this and have a reduced pension when he eventually retires, and this is something he wants to do.

However he is currently getting pension credit as he has turned 60, will this be affected if he takes out the lump sum?

Bump please

yes it will:

Income that is counted towards Pension Credit

The amount of Pension Credit you get depends on how much money you have coming in each week and how much you have saved or invested.

The following types of income are taken into account when calculating your Pension Credit:

• State Pension (including basic State Pension and additional State Pension)
• occupational and private pensions
• most social security benefits like Carer's Allowance
• £1 a week for every £500 (or part of £500) of 'capital' you have over £6,000 (capital includes savings and investments, and property that's not your main home)
• £1 a week for every £500 (or part of £500) of 'capital' you have over £10,000 if you live permanently in a care home
• earnings after tax and expenses from employment or self-employment, less half of any company or personal pension contribution you make

In this year?s budget the chancellor announced that the £6,000 capital disregard will be increased to £10,000 for all from 2 November 2009.

If you have a partner you and your partner?s income and capital will be added together when calculating your Pension Credit.

The term ?partner? refers to your husband, wife or civil partner, or the person you live with as if they were your husband, wife or civil partner.

from here www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180168

Many thanks Lonicera