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Cashing in 25% tax free part of pension

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4 years 11 months ago #231747 by starflower
Cashing in 25% tax free part of pension was created by starflower
Hi, I am on contributions based ESA which has now a top up of about £17 income related. I am only in my late 50's but could cash in 25% of old private pensions that I have not paid into for years. I would like to claim 25% of the very small one which would give me a tax free sum of about £1500. The questions is would that cause problems as in would the DWP etc say that if I cash in 25%, then that means I have access to the 75% if I wanted it and they would therefore treat me as such . The total amount is only about £6100. Would they also say that by accessing the 25% of the small pension, I can access the main pension? Hope this makes sense. Thanks

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4 years 11 months ago #231752 by Gordon
Replied by Gordon on topic Cashing in 25% tax free part of pension
starflower

Your ESA(CB) will not be affected by any one-off pension payment.

Your ESA(IR) will only be affected if the payment takes your total assets and savings over £6000.

You won't be required to cash the other 75%.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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