stakeholder pension

A question about : stakeholder pension

I have been advised that I should take out a pension as my state pension when i retire will not be enough to live on.As I am long term disabled (income support + disability premium) I am confused that if I take a stakeholder pension and start contributing will it affect my benefits.I have contacted my local jobcentre plus and was told it should n't affect my benefits at all.However when the pension can be cashed in ( I want it when I am 65)it may lead to me having less benefit as it will count as income.But surely if I start drawing the pension at 65 and tell the social security that it should n't be a problem,should it?I am 36 at the moment.

Best answers:

• andrew,
  My 'second thoughts' about this are as follows:
  When you retire your income may not be any less than it is today - as you are effectively on a 'fixed-income' [state benefits] that only goes up in line with prices.
  The equivalent 'means-tested' benefits post 65 are, if anything more 'adequate', and more generous - since these are currently being indexed in line with earnings - and therefore rising 'faster' than is your current income. !
  You are not likely to require to 'raise' your income from other sources [eg a personal or stakeholder pension] as a result.
  Unless, that is, your circumstances change - as they may - and you take up salaried employment. In these circumstances you would lose your fixed income and be receiving a higher 'variable' one. The fact that you would then become !used to this higher level of income might make the option of a pension more pressing and logical, but unless this occurs there is nothing particularly to 'commend' starting a pension now.
  Hope that may help
  Regards
  M !