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Private Pension and ESA
- Claire53
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5 years 5 months ago #221390 by Claire53
Private Pension and ESA was created by Claire53
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.
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- Gordon
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5 years 5 months ago #221417 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Private Pension and ESA
Claire
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 £.
Gordon
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 £.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: RJC, Claire53
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