Taking a Pension lump sum

Linda wrote: My Partner has discovered he has a 40 years old pension pot that he can withdraw in various ways. We are thinking of taking most of it and declaring it to DWP and coming off ESA Housing and Council Tax benefits to live off this income until it reduces to an amount we will qualify in the future.. We want to use the lump sum to buy a car as we have a disability car at the moment and this would free up the amount paid of DLA for the car. In addition we both pay monthly towards a funeral plan and would like to clear this with the money, would the DWP decision maker see these spends as reasonable?

I'm afraid we cannot give detailed financial advice on the forum, you should get face to face advice from a trained advisor.

DLA/PIP is not a means tested benefit so whatever you do with your pension it will have no effect.

If you are going to close your ESA and HB claims then again your pension will not be an issue, but be aware that if your partner closes his ESA claim then he will no longer receive NI Credits which count towards a full State Pension. If he sufficient credits already then this will not be an issue, but if not then he should get advice on the impact that this might have.

Gordon