Pension lump sum when on benefits

moneypenny1
moneypenny1 Online Community Member Posts: 2 Listener
edited October 9 in Benefits and income

I get benefits i was told that I could take a lump sum of 6000 or less and it would be classed as savings ,now if I spend it and then say 3 months after that and get another 6000 will it still be savings it not a monthly pension just dip into it now again thanks and hi I'm anne

Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 5,085 Championing

    Hi,

    Your total savings must stay below £6000 to work in the way you are thinking. So if you already have say £100 in savings, you could only take £5899 of the the pension before you would have to declare savings as being over £6000.

    Just to make you aware, if you are now on UC rather than legacy ESA, they will most likely ask for bank statements at some point. If you are taking large sums of money from a pension and then spending that on items that DWP deem inappropriate, they could claim deprivation of capital.

  • 66Mustang
    66Mustang Online Community Member Posts: 15,255 Championing

    Depending on the type of pension it's tempting to advise you to leave it alone till you're state pension age, that way it may appreciate and you might get more, and you have the bonus of not having to have your spending scrutinised

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