Another Access to Pension Issue

Hi all
A lot of discussion has surrounded this "access to pension funds at age 55" business. I think it is generally agreed that flexibility (for those savvy enough) is a good thing.
My concern with this is the possibility that making funds accessible to the individual also makes them accessible to the government. In other words, if you need money in future for e. g. nursing care I can well see your entire pension pot being considered as disposable income to cover this.
Has this been covered elsewhere or reassurances given?
Thanks
Phil
Reply to
thescullster

"thescullster" wrote in message news:m69pa1$arq$
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I don't see why this is an issue at 55.
Few people are forcibly put into a "home" at this point in their life, the vast majority of people who are placed into a at home at "council expense" are well beyond the point of having cashed in their pension and will either have spent it or turned it into an irreversible annuity.
You can't claim council help for voluntarily going into a home
tim
Reply to
tim.....

Hi Tim
The issue is that buying an annuity is no longer recommended (due to very low returns caused by interest rate levels). So pension savings will be more accessible in "income drawdown" plans and similar, regardless of age.
Nursing care was in the news recently(ish) as people with "savings" were expected to use these to fund elements of this care down to certain savings level.
My concern is that pension pots become targets for means testing as the government changes make them more accessible.
Phil
Reply to
thescullster

d
I think this is an important question. A related situation exists already w ith SIPPs and income drawdown, although the maximum rate of drawdown is lim ited. How is that handled? Are people forced to draw down at the maximum rate if they are in council-funded care?
Reply to
RobertL

,
and
re
e
dy with SIPPs and income drawdown, although the maximum rate of drawdown is limited. How is that handled? Are people forced to draw down at the max imum rate if they are in council-funded care?
maybe nobody has thought it through yet.
Robert
Reply to
RobertL
IIRC the current regulations dealing with care already count as income any pension which a claimant is entitled to claim but has not done so and any capital which the claimant is entitled to receive and can receive in the UK. It's all in CRAG - the assessment "bible" - you can download
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Robin 
reply to address is (meant to be) valid
Reply to
Robin
Instead of (in most cases) buying an annuity which would count as income for a charging asessment.
If your point is that some people in edge cases might not be able to keep their cake while others pay for their bread and butter then I don't really know - or care.
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Robin 
reply to address is (meant to be) valid
Reply to
Robin

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