Is this feasible?

“ Surely, legislation is in place to ensure retirees use private pensions when they leave work?”

No, of course not. Why would it be?

PIP is not means-tested. Final salary pensions often pay out higher rates if you delay taking them. If they have a substantial private pension then they probably have substantial savings to live off until they choose to take their private pension.

Having a private pension does not mean you don’t claim state pension. Getting state pension AND pension credit suggests they will be ineligible for the winter fuel payment. I respectfully suggest that your scenario is unlikely - in relation to the pension credit and the WFA.

Georgesgran

***However, to leave a private pension to get benefits is just immoral and in my opinion should be illegal too!!

Completely agree with you Georgesgran.

No it’s not fair and one reason why some of us ‘ just overs’ can’t get any help while others get loads

Bonnybanko

My my living off the state when there’s a private pension sitting around, get a life and enjoy it while you can otherwise that private pension will go to you’re next of kin when you pop your clogs which can happen at any time, share it with those less fortunate don’t be greedy or one of the needy.

"A pension from a defined benefit pot can usually only be paid to a dependant of the person who died, for example a husband, wife, civil partner or child under 23. It can sometimes be paid to someone else if the pension scheme’s rules allow it - but it will be taxed at up to 55% as an unauthorised payment."

Not so, Bonnybanko, the pension pot doesn't automatically go to the next of kin.

And yes, I do feel that paying into a scheme for decades and not drawing on it personally is simply bonkers.

I also feel that it is morally wrong to claim benefit when there is a private pension pot waiting to be sourced.

My question was "Is it feasible?' Does anyone know someone who has actively done this? Surely, legislation is in place to ensure retirees use private pensions when they leave work?

*However, to leave a private pension to get benefits is just immoral and in my opinion should be illegal too!!

Yes - if they want to leave the private pension to continue to get interest. It would be foolish not to take the 25% tax free lump sum and equally foolish not to investigate what would happen to it on death.

I know someone who worked for only 2 companies in their working life. He can more than manage on his DWP and one pension, so the other has been left to grow. All with the approval and advice of an IFA.

In my own case - one of DH’s pensions is from a final salary scheme and I receive 100% of that and it will pass to the DDs on my death - if there’s anything left.

My my living off the state when there’s a private pension sitting around, get a life and enjoy it while you can otherwise that private pension will go to you’re next of kin when you pop your clogs which can happen at any time, share it with those less fortunate don’t be greedy or one of the needy.

So do you mean they will have been paying into the private scheme all these years, but then choose not to use the pension, in order to claim benefits?

Why pay into the scheme then?