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TOPIC: Private Pension and ESA

Private Pension and ESA 5 months 5 days ago #221390

Hi all , I was offered my Works Pension last Year due to my ill Health, and i have been finding it hard to get any advice, A break down was i could take £21k and then a pension of £3066.49 pa, which is £58.97 a week. or no lump sum and £3453.58 pa, that works out £66.41 a week. I would like to take a lump sum, but i do not know how much i should take, ie how much Capital i can have before it messes up my ESA, and how much the payments a week from pension would impact ESA i have been reading things like pension is disregarded unless it is over £89. a week. I decided when i started Pension Plan i would like too retire at 55 so Next Year , as that would have fitted in with me being mortgage free, but as life has habit of not working out as planned , I have not worked for a number of years, and not made any contributions to my pension, i do not have a mortgage anymore as i had too sell house, and i am now a Council Tenant, i get housing benefit, and reduced Council Tax. hope some one can help. As i am confused with it all.

Private Pension and ESA 5 months 4 days ago #221417


It will depend on the ESA that you receive.

ESA(CB) - there is no savings limit so you can take whatever lump sum you want. If the weekly payments from all your pensions exceed £85 per week then there is a £1 per week deduction for ervy £2 in excess of the £85.

ESA(IR) - Any lump sump that takes your total assets and savings over £6000 will result in deductions from your ESA, see

Asset and savings rule for ESA(IR)

If your savings and assets exceed £16,000 then your ESA payments will be stopped.

Any regular pension income will be deducted from your ESA(IR) £ fo £.

The following user(s) said Thank You: Becca, Claire53
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