Alongside the headline question of what happens to the family home, families often ask about pension income when one spouse needs residential care and the other continues to live at home.
The general picture
The person going into care has their own income assessed. Any occupational or personal pension in the care-receiver’s name is normally included in their income for the means test. However, under current public guidance, there is a 50% occupational-pension disregard in certain circumstances where that half of the pension is paid to the spouse at home.
Why this matters
Without the disregard, the at-home partner could face a sudden fall in household income because an occupational pension that previously supported the household is being fully counted towards the other spouse’s care fees. The disregard is intended to protect against exactly that.
What to check
The rules on pension disregards have detail that matters. Check the current public guidance for your part of the UK and, where significant income is involved, ask a regulated adviser to look at the whole position.
Not sure where you stand?
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