Retirement and investments

[anonymous-user]

Got a family member coming up for retirement soon. (Not me , another 20 years away plus for me )
Currently they have £50K+ sat in the bank account. Once they come to retire if the have more than £16K in the bank the system takes that into account and reduces the pension. Are there any good legal options of investments/bonds etc that they can invest in that will move the money out of scope as being income so to speak.

[Jockman]

Well, you learn something every day !!

I realised that having money in the bank (circa £22K ??) can affect any benefits ur on - housing etc - but I didn't realise it could affect your pension entitlement.

If this is the case you can always defer taking a pension in return for a bigger pot

[ukshooter]

Holding Investment bonds issued by insurance comapanies (single premium whole of life policies) does the job.

[rolex]

It's not the state pension that is affected by savings, it's the pension credit add-on which is means tested. Info here, contains a handy calculator to work out if you will receive it.

http://www.direct.gov.uk/en/Pensionsandretirementp...

[allgonepetetong]

gerradiuk said:

So if Rolex is correct then you are trying to cheat the benefit system ?

I think he's playing by the rules. He doesn't have to keep it in a bank - does he?

[anonymous-user]

allgonepetetong said:

I think he's playing by the rules. He doesn't have to keep it in a bank - does he?

As per initial comment not me, an older relative. Like you say something where you are playing by the rules

[s2t]

rolex said:

It's not the state pension that is affected by savings, it's the pension credit add-on which is means tested. Info here, contains a handy calculator to work out if you will receive it.

http://www.direct.gov.uk/en/Pensionsandretirementp...

and the most annoying part of that link is


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