If you are out of work and are considering the income-based job seekers allowance, the DSS will subject you to a means test and if you have more than £8000 in savings you will get your entitlement reduced. Savings includes bank accounts and PEPS and ISAs but not Pensions. Under the new pension rules you will only be restricted by the maximum life time contributions (£1.5 million ? I think) and not by a percentage of your current earnings.
Question. If I am about to go on Jobseekers allowance and I have savings above £8000 can I immediately transfer the excess into a pension fund. Claim my full benefit and protected my hard earned savings in a pension.
Mike