Concerns taking lump sum pension pot — Scope | Disability forum
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Concerns taking lump sum pension pot

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sandyp196
sandyp196 Community member Posts: 142 Pioneering
in Benefits and financial support
I have a small pension pot I can access this year. I really need the money to help my daughter get a round of ivf as she 36 now and time is running out. I also need to get my dog an operation on her hips and i need to do essential upgrades on my home and buy some decent furniture and carpets.
I recently got sorted with esa and pip after a horrendous battle. Life is more stable now but I'm still suffering the effects from years of severe poverty. 
The pension pot I have access to is not a lot but it would be over 16000.( I don't want to say the exact amount as I know you have to be careful online discussing pensions because of all the scams).
I'm just so scared as I know this pot won't last long. It probably isn't even enough to help my daughter with the ivf and also do all the basic essentials I need and my dogs surgery and after care (Incidentally the very year I can finally access this pot is the lowest total amount its ever been in about 10 years which was a little disappointing). If it was a bigger amount I would take it, do all i need and just live frugally as possible for a few years. 
I know I will have to live on this money if I take it out. I will have to pay rent, council tax, bedroom tax etc.
Ofc I don't mind doing this. I don't expect to recieve benefits if I have a lump sum of money at my disposal. 
But my main worry is what will happen when the money runs out? Will the dwp penalise me for not making the money last? Will I be penalised for giving a lump sum of the money to my daughter? 
I am not planning anything luxurious like holidays or treats. 
I went through so much to finally qualify for esa and pip. It was a horrendous experience that I'm still not really recovered from yet.
I guess I'm scared what will happen to me in the future. 
I don't think I will live much into state pension age so I'm not worried about cashing in the pot now. 
I'm not terminally ill but I suffer a lot of chronic ill health conditions that are getting worse. 
I tried to ring pension wise but I didn't understand much of what they said and then they transferred me to someone else who cut off the call.  As well as physical health problems i am diagnosed with autism which makes trying to explain all this to anybody super hard. 
If you can understand any of it and can offer me some good advice or experience I would be very grateful. 
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Comments

  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    1) PIP is not means tested so will not be affected.
    2) What type of ESA do you you receive? Is it new style ESA or the old ESA and if the latter does it include contribution based ESA and income based ESA or just income based ESA?
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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  • poppy123456
    poppy123456 Community member Posts: 54,235 Disability Gamechanger
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    Housing benefit and CTR will stop. Once the money drops below £16,000 you'll need to claim Universal Credit for help with any rent. Giving away money can be seen as deprivation of capital and may affect your UC when you claim it so please be aware of that.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • sandyp196
    sandyp196 Community member Posts: 142 Pioneering
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    Thank you for answering my post 
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  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,978 Disability Gamechanger
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    You are welcome @sandyp196. That's the very least you deserve. If we can do anything else to help, please don't hesitate to let us know. We are all here for you  :)
    Community Volunteer Adviser with professional knowledge of education, special educational needs and disabilities and EHCP's. Pronouns: She/her. 

    Please note: if I use the online community outside of its hours of administration, I am doing so in a personal capacity only.
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