Hi, my name is antbrigh58! will cashing out our pension pot affect our UC?

Hi am after some advice if possible, my wife and i are both under state pension age, we are on joint universal credit, i am terminally ill and my wife is my carer. My wife wants to cash in an entire pension pot of 6240 pounds 240 pounds over the limit for savings, however she is into 900 pound overdraft. Can someone please advise as to whether this will affect our universal payments.
Thank you