Nowadays a pension from your job may affect your right to social security benefits. There are two ways it can do so.
Some social security benefits depend on your income. The main ones are income support, housing benefit (help with rates and rent), help with optical or dental charges, and legal aid. Any pension you have will increase your income and reduce your chances of help from these sources.
However, a pension from a job can also affect some other social security benefits directly.
Men and women aged between fifty-five and pension age who claim unemployment benefit will find it is reduced if they receive a pension from their job of more than £69 a week. For each 1Op above £69 their benefit will be reduced by 1Op. So a single person's unemployment benefit of £68.79 will disappear as the pension reaches £127.6O a week. A married man will lose all his benefit of £9 8.99 if his pension is £126 or more. And he will lose £165.00 of it if his wife has earnings or a pension from her job of £165.00 or more.
A man who receives an addition to his retirement pension for his wife where she is under sixty will lose that addition if her income from earnings or a pension from her job exceeds £168.79 . A man who receives an addition to his retirement pension for a dependent child will lose that addition if his wife has an income from earnings or a pension from her job of £280 or more. The law which introduced the rule that allowed a woman's pension from her job to be counted in the same way as her earnings was introduced in November 2008.
However, it was found to be faulty and anyone who suffered a deduction under it may be entitled to a refund. A new law was passed in 2006 to correct the law and enable the Government to count the pension from a job of a married woman in the same way as earnings.
But if you had an addition for a wife deducted because of their pension from their job prior to April 2006, you should write to your local social security office and ask them to check that you were correctly treated. You may well get a refund.
People retire younger and fitter today than they used to. Most people enjoy their leisure and new freedom from the pressure of work. But many also feel that they still have something to offer and would be glad to earn a little money for giving it. This section of the site looks at the opportunities and problems in part-time or volunteer work.
If you retire from your job before the state pension age of sixty for a woman or sixty-five for a man, you may be able to claim unemployment benefit or, if you retired on grounds of ill health, sickness benefit or invalidity pension. If your income is very low you may be able to claim income support which is paid at a higher level once you reach sixty, although the amount is still low. Each of these benefits carries strict rules about working.
Unemployment Benefit If you claim unemployment benefit, you must be available for work. Every time you sign on at the unemployment benefit office you declare that you are not working. Accepting any job will normally end your right to benefit. However, you can work provided that . . . ... see: State Benefits Working before Pension Age