Employment and Support Allowance (ESA)
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Pension and esa.

In January of this year, I was informed that I had an opt out pension (serps) that I took out in 1988, and as I was coming to retirement age, had I any thoughts on what I was going to do with it. This was the 1st corespondence I’ve had with my policy holders since I took it out in 88’. I’ve moved locations throughout the years, so they’ve finally caught up with me, at my now address. The problem is, that for the last 2yrs I’ve been receiving esa (support group). I’m now thinking of releasing some capitol from my pension, and putting the rest into an income drawdown. I know that depending on the amounts taken, that I am liable for some reductions on my benefits. I shall of course let esa know of my intentions, and the amount in question. BUT, will esa then say that as I knew of the pension in January, this year, will money be taken from me that I may owe, backdated to January. Or worse still backdate the whole 2yrs of esa, because they wouldn’t believe me when I say, I only found out recently. I don’t officially retire untill May 2019, so esa will be ongoing until then. Thanks in advance for any information given. I’ve just joined the group, on my introduction foray I’ve had a few welcome posts, but unable to reply to them, because I don’t know how yet.


  • poppy123456poppy123456 Member Posts: 22,218 Disability Gamechanger
    It depends which ESA you're claiming. Contribution based ESA isn't affected by any savings/capital and any lump sum you receive from this won't be affected.

    If you receive Income Related then any money received that is £6,000 or more and it will affect your ESA £1 for every £250 over than amount. Anything over £16,000 and your ESA will stop. These amounts will also affect any means tested benefits you claim like housing benefit and council tax reduction.

    I can't help with the other questions, hopefully someone with more knowledge will be able to advise you further. Other than that i'd advise a visit to your local CAB who will be able to advise you further.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • jonboy50jonboy50 Member Posts: 6 Listener
    Thanks poppy123456.yes that’s my main concern, I am in the support group, and wondered, if the pensions not touched, ie taking out of the pot, rather than just leaving alone until retirement , would this trigger a chain reaction from esa. Things like , “you knew about this money, why are you not using it,” erm, because I was going to use it for my retirement.
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