Another Access to Pension Issue

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

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

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?

Exactly the sort of thing I was driving at, but there don't seem to be any takers!

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

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

AIUI, under the new rules you would be "entitled" to withdraw your entire pension pot (albeit paying more tax).

Phil

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.