Pension aged 55

miracleboy
miracleboy Online Community Member Posts: 47 Connected
in Employment and Support Allowance (ESA)

Hi

I understand if this not can be answered but just a general insight if anyone has experience with this. I am on ESA Support Group Income Related (not on uc yet) and also PIP High Rate for both. I would like to know my private pension is worth 14,000 and I can take a quarter when I am 55 which is next week, but obviously if effects my benefits I can’t do this. Just wondered what is the limit where it won’t effect my benefits?


Thank You

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Lump sum withdrawal is treated as savings. If it increases your total savings to more than £6,000 there's a £1/week deduction in your ESA for every £250 or part thereof over that amount. Savings/capital of more than £16,000 means entitlement to all means tested benefits end.

    If you're claiming Council Tax reduction, some local Authorities have a maximum savings limit of £6,000 before entitlement ends. Single person discount is not affected.

    If you drawdown a weekly/monthly income then it will be deducted in full from your ESA, for this reason there's very little point in taking this drawdown.

  • miracleboy
    miracleboy Online Community Member Posts: 47 Connected

    hi


    Thank you for your kind reply. It would be below £4,000. I do claim council tax and housing benefit. I was told by pension wise to phone HMRC or Dwp but am scared of it leading to a review again for my esa.

  • miracleboy
    miracleboy Online Community Member Posts: 47 Connected

    I would only take a quarter and leave the rest.

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing

    Yes, you do need to report the drawdown, if you go ahead with that. It will not prompt a review. If you're in the Support Group they are suspended still anyway.

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