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TOPIC: benefits and private pensions

benefits and private pensions 2 weeks 2 days ago #232128

I have a rather tricky quandary and was hoping you may be able to help with it so I’ll keep it short, in bullet points.
1. I have a number of final salary company pension schemes from when I was able to work with retirement ages 60 and 65
2. In just over 12 months I will be 55 and could transfer one to a personal pension and draw it all as a lump sum with a huge tax charge
3. I am in receipt of ESA and PIP and would need this pension fund money to go with the equity from my current house to help buy a property more suitable to my condition if I need to sell.
My question is :
Do you know if this would be classed as a disregard or would it affect benefits.
I am aware that it is unwise to try and transfer from a final salary scheme, but cannot obtain a more suitable property without it.
My apologies if this is outside the remit of the forum.
Thanks
Robin

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benefits and private pensions 2 weeks 1 day ago #232151

Robin

PIP is not affected by your savings and income.

If you are only receiving Contribution Based ESA then it will not be affected by any lump sum that you take but any regular pension income can reduce your ESA(CB).

If you receive Income Related ESA, either in part or in whole then it will be affected by the lump sum, see

Asset and savings rule for ESA(IR)

Gordon

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

benefits and private pensions 2 weeks 1 day ago #232162

Thank you Gorden
Robin

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