Pensions and ESA

Having a look at accessing my pension plans, to buy a car more suited to my disability's. About 10K would get what I need.

The first obstacle was the 25% tax free lump sum, because you have to decide what you do with the remaining 75%. What I found out was that for example you opt to take 25% and then cash lump sums for the next ten years, Your initial 25% tax free is divided over the ten years.

Next issue I have come across is trying to decide what we can take out without hurting our benefits?

We get ESA income based for me & the wife, Housing Benefit full amount and council tax max amount for our 1 bed housing association bungalow.

ESA say you can have £6K of savings but is there a total income level that you fall foul of if you take £6K of pension to buy a disability car?

So far I'm confused on the savings and pension rules for over 55's.

Please can anyone advise me, as the pensions advice line only looks at working peoples pension advice.

Hi Gordon.

Thank you for pointing me in the right direction.

All of the dot gov and pension wise info doesn't advise for people not working and on benefits. Also they miss lead people in the TV adverts as you have to plan the remainder of your pension plan and then the 25% lump sum tax free get's spread across the planned number of years.

While I accept your point on the validity and privacy of financial matters, people using the forum might be interested in what we discover, as I'm sure that I'm not alone in wanting to access pension plans to supplement the PIP shambles that deprives disabled people from accessing basic road transport especially if they live rurally.

Regards Steve.