Is this feasible?

I wish people would read the thread.

cookiemonster66

You cannot claim PIP once you reach state pension age, you have to claim attendance allowance instead

I was in receipt of PIP prior to turning 66 last year, mine was awarded for 10 years, so I’ll be on PIP until the renewal date.

One would have to actively lie on any application forms to benefits, other than PIP/Attendance Allowance.

A private pension, whether being claimed or not is a financial asset and will be calculated as such.

Sorry, RubyRoobs, you are late to the party. Several of us have said this already. The OP has come back to us, as can be seen if people read the whole thread.

It is fine not to take your private pension. It is not fine to claim means tested benefits like Pension credit when you have a private pension available to you and when you claim Pension credit I believe it asks about private pensions and you are likely to be treated as if you are drawing them.

cookiemonster, a PIP claim can continue after reaching state pension age, if it is started before

NO way, 4allweknow, a full financial assessment would be made.

If existing only on benefits such a person would probably also be fully funded if ever needing care. Criminal!

You cannot claim PIP once you reach state pension age, you have to claim attendance allowance instead

I haven’t noticed anyone ^rubbing their hands in glee as they aim a kick at those on benefit’. Posters have however spoken out about fraudulent claims, and rightly so.

Barleyfields

I suppose the DWP don’t have the resources to carry out extensive background checks on every claim, though they have the power to do so and this is one area where the use of AI would be valuable. Perhaps this will change with the promised crackdown on benefit fraud. I knew of one man who successfully claimed pension credit for years on the basis of disclosing only one of his bank accounts, the one in which he had little money. The hidden account containing a very large sum came to light only after he died and the executors had to make a substantial repayment to the DWP before the estate could be distributed.

So I have looked this up for those who are rubbing their hands in glee as they aim a kick at those on benefit.

All income has to be declared. All savings have to be declared. An unaccesed pension pot counts as savings and it will come up on the DWP radar.

If you claim PC and leave your pension pot alone, the DWP include ‘notional income’. This is an amount equivalent to the income you would have received if you had bought an annuity with the pension pot.

If the 'notional income' brings income above the eligability level they will not get PCG. If it is below they will.

The problem would lie in the pension credit claim as unlike PIP it is means-tested.

PIP is to help with some disability or illness and is not income dependent so has nothing to do with having another potential source of income or, indeed, a large income. You can't claim PIP after reaching SP age but if you are already getting it you can keep it if your condition means you still qualify. What's the problem?

Astitchintime

Just to reassure GNetters........My original post was certainly NOT about me or my partner. Nor was it a dig at anyone in genuine receipt of pension credit, PIP, WFP or any other benefit for that matter.

I had already formed the opinion that it was probably fraudulent and most certainly morally wrong anyway and I am well aware that financial institutions, businesses and employers submit an annual return to HMRC.

The part I was not sure about was with regard to the private pension not being drawn on.........personally, I couldn't wait to give back my uniform, and get my lump sum and pension. Doing that sort of 'went with the territory' where I worked to be honest.

The whole situation defined in my OP came up in conversation with a third party and, being both curious and morally concerned, I simply wanted to investigate further.

The 'third party' involved in all this will submit their findings so if it is happening it will be investigated and action will be taken, such is the establishment that myself and third party volunteer for.

Reading all your comments has been both interesting and enlightening; you can all rest assured that there is no fraudulent activity happening chez Mr&MrsA.

Interesting situation! Obviously, you know more about the details and you and the third party will deal with it, but sometimes these situations are a mix of Chinese whispers and urban myth as in 'the family down the road, have never worked, have a new car, and go abroad on holiday three times a year' type thing.

I have a local government pension (can't take it until I retire) but if I die then it dies too! My daughter will get my Death In Service benefit if I die before I retire - but that is it!

I suppose the DWP don’t have the resources to carry out extensive background checks on every claim, though they have the power to do so and this is one area where the use of AI would be valuable. Perhaps this will change with the promised crackdown on benefit fraud. I knew of one man who successfully claimed pension credit for years on the basis of disclosing only one of his bank accounts, the one in which he had little money. The hidden account containing a very large sum came to light only after he died and the executors had to make a substantial repayment to the DWP before the estate could be distributed.

Barleyfields

What GG says illustrates perfectly the difference between a private pension, which is akin to a savings account, and an occupational pension which is not a pension pot and can only be used to provide an income. No reason why a private pension shouldn’t be left untouched provided its existence is declared in an application for means-tested benefits and, shortly but not at present, on death for calculation of IHT.

Agreed.

Wise to allow private pensions to remain untouched, a bit like an emergency fund. Not wrong, just needs to be appropriately declared.

Completely agree...totally immoral. Didn't even know you could do that!

No, that is cheating, and immoral.

I've know the DWP to ask about an account the claimant could not begin to place (she was in bits with worry). The DWP were very kind - they just want the numbers.

It turned out to be a pension that had been "wound up" years ago and she had taken the amount under triviality rules. The DWP just needed to know.

However, this would suggest to me that even an undrawn on account would show up.

Cabbie21

Yes, but by the time the investigation is complete, there will be a considerable amount of overpayment to be repaid and potentially action against the person making a fraudulent claim. Even prison.

Exactly.

What GG says illustrates perfectly the difference between a private pension, which is akin to a savings account, and an occupational pension which is not a pension pot and can only be used to provide an income. No reason why a private pension shouldn’t be left untouched provided its existence is declared in an application for means-tested benefits and, shortly but not at present, on death for calculation of IHT.

DH and I both have a personal pension pot which is untouched.

It is there if we need care, either residential or at home.

We are in receipt of our state pension and other incomes, nothing fraudulent or dodgy just sound forward planning.

Astitchintime, thanks for coming back and reassuring us that the situation is being dealt with.

Mt61

I don’t think that would be allowed, would you not have to declare it?

If you are referring to a dormant account, it would be, as I said, that the person who has it has forgotten about it. The organisation that hold the money will have made considerable effort to trace the individual and failed.

It is likely the sum of money in it, even with interest, will be minor - people rarely forget accounts with significant sums of money in them - and, as I said, organisations like banks and building societies, write these accounts off as dormant and may well no longer have any record of them. If they do, they will be in their annual return.