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ESA AND TAKING ILL HEALTH OCCUPATIONAL PENSION

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7 years 1 week ago #184257 by Bengal21
Hi

I hope someone can help me, I am thinking of taking my Ill health pension from the organisation that I previously worked the normal pension age for my works pension is age 60. I will be 56 in April this year I have been struggling to cope and work.

I am now however now unable to work due to ill health for the last three years I have tried to work but unfortunately my condition has deteriorated further. I live alone and I have my own home and bills to pay and im so worried that i cant sleep, overall Im very frightend and very worried about my finances. I am in the Esa support group and receiving income related Esa and contribution Esa also disability living allowance .

They are reviewing my esa this November and Im worried that I will loose it all if i take my pension.

My pension estimate is 6,904 a year with a lump sum of 19.600 I want to use pension as an income, I think this would give me a weekly pension of about £150.00 a week.

Am I right in thinking they will stop all my esa money if I take my occupational pension.?? uncertainty and worry is making me ill. I have tried ringing the WDP but I am profoundly deaf in one ear and not much hearing in the other ear I find esa a very confusing benefit to understand. I am very anxious and frightend .

My Esa is £198.00 a week this includes the both income and contribution based amount. My pension weekly would be about £150.00

Many thanks

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7 years 6 days ago #184290 by Gordon
Elliedee

We can't give detailed financial advice on the forum you need to get face to face advice from a trained advisor, do an internet search for "welfare advice" with your postcode, town or county.

There are two potential issue for your ESA(IR), the lump sum is in excess of the maximum £16,000 that you can have in savings and assets .

Secondly, the weekly income is more than any ESA(IR) that you will be receiving.

So the bottom line is that I cannot see anyway that you will retain your ESA(IR) and any passported benefits that it enables.

I think, this is something that an advisor will need to confirm, that the savings will take precedent over the weekly payments, meaning that all of the weekly pension will be used in regard your ESA(CB). The rule is that there is an £85per week disregard followed by a £1 deduction for every £2 of pension in excess.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Bengal21

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7 years 5 days ago #184300 by David
Hi
I was in a similar position two years ago regarding pension although only ESA(CB)SG. I had a financial advisor due to wanting to cash out one pension completely and take another as income. Before this could be done the FA required confirmation from DWP that the large lump sum would not affect my benefits. I have a letter from JC+ confirming that capital would be ignored.
This was my experiance, I am not an expert. So far no repercussion from DWP although Tax man did hit me up with a demand.

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7 years 5 days ago #184388 by Bengal21
Replied by Bengal21 on topic ESA AND TAKING ILL HEALTH OCCUPATIONAL PENSION
Thank you for the reply I will speak to a financial adviser.

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