Pension pot

Johnmc

Hi, I'm new on here and need a bit of help. I'm on contribution-based esa support group and also on pip, I have a pension pot of £27000 gross and as I'm in poor health 'heart is getting weaker' and spinal problem as well I was wanting to take my pension out as a lump sum but I'm afraid I will lose my benefits. The reason I want to take it out is to enjoy some things in life and give some money to my daughter and granddaughter. Although I haven't been giving less than a year to live I know I won't see pension age!? Ps I'm only 55... Many thanks

poppy123456

Contributions based ESA is not affected by savings/capital. If your ESA is more than £117.60 per week then at least part of it would be Income Related. Savings of up to £6,000 are ignored. For every £250 or part this of over this amount there's a £1 deduction. For savings of more than £16,000 then entitlement to all means tested benefits stop.

If you're claiming Council tax reduction then all local Authorities have their own savings threshold and some have a maximum total savings of £6,000.

Johnmc

Thank you poppy. My esa is £117.60 so does that still mean everything over £6000 will mean a deduction?Sorry for sounding thick

poppy123456

Johnmc said:

Thank you poppy. My esa is £117.60 so does that still mean everything over £6000 will mean a deduction?Sorry for sounding thick

No, it means that all of your ESA isn't affect by any savings/capital. The only thing that affects it is a  pension income of more than £85/week.

Johnmc

Wow that's brilliant thank you so much poppy... Time to get my snorkel out lol!!