Hi, my name is Mariech28! Will taking an amount out of my pension affect my benefits?

Mariech28

hiya, I’m on income related esa and in a support group I have a pension that matures in august as I reach 60. It was an opt out pension back in the late 80’s/ early 90’s which retirement age was 60. I’m on the understanding if I take the full amount will affect my benefit ,It isn’t for a large amount so I’m wondering if I take 25% which will roughly be £3250 whether it will affect my benefit. Also if I did take it all as I owe some out as I had to get a new car due to an accident will that affect if owed out.? Also if I can take 25% what s best to do with the rest. I know it’s a lot of questions but would be very grateful for the help thanks

Mariech28

Rosie_Scope

Hi @Mariech28, welcome to the community 😊 I'm afraid I'm not too sure about your question myself, but we have lots of helpful members on the community so I'm sure you'll get some answers here. I just wanted to say hello and let you know I've popped your post into our Benefits section where more members can find it. Nothing you've done wrong, just makes it easier for the people with the right know-how to find you and offer their advice. Hope you can get things sorted 😊

Dave1993

so anything over £6000 to £16000 you will lose some of ur esa money anything over £16000 you lose ur esa you could take £5000 out of ur pension and you will be fine

poppy123456

Lump sums from a pension will be treated as capital/savings for your ESA. If you currently have no savings then you can drawdown up to £6,000 without it affecting your ESA. You will still need to tell ESA about the lump sum because it's from a pension and they will find out anyway.