EMPLOYMENT PENSION OPTIONS AFFECT EXISTNGBENEFITS

I have been long term disabled with many chronic conditions including cancer and presently on Income related ESA and PIP enhanced. I recently received email saying in July 2020 i am due Defiined Benefits Pension from when i worked 10 years 10 months at a bank from age 17, payable to me from age 60 in July. CAB has told me that i cannot defer it til State Pension age which i thought it would be more needed then as ESA stops? They cant tell me if il get Pension Credit, how much etc. They said DWP would take it as "Notional Income" and deduct it from my ESA from NOW even if i dont receive it, is this so? Either way it seems each option makes me worse off, apart from one, £3000 annuity that just replaces part of my ESA,so is least detrimental, but only any good if live til 90! which i def wont, family history,my poor health. Cant get Financial advice as really rural here and with covid situ. Pensionwise cant advise with this type of pension. What to do to not be worse off?, its making my existing conditions worse worrying about this. Any advice?

THank you Gordon.It states that Normal Pension Age is 60. I emailed the pension company to ask if i could defer taking it till state pension age? and was told i could defer until age 75 at the latest..but that the amounts would needs to be recalculated. Ive googled about notional income and notional capital and it states that if you defer in order to receive a benefit then it is seen as notional income. I am already on my above existing benefits ,so its not that im defering so i can apply for any new benefit, so do you think i would be ok to defer til Pension Credit age, or will the DWP take money off me from now? Im concerned about phoning DWP to ask them direct about it in case this then informs them to implement them to take money off me from now as notional income, that i dont have yet.

Is there anprefered outcome of waiting until Pension Credit age rather than taking the pension now whilst im on PIP, Income related ESA and receive housing benefit? I know either benefit would have the pension amounts deducted from them. 1 option is to take a £10K lump sum +£2K annuity, would i be allowed to buy a prepaid funeral plan straight away with part of said lumpsum? or is that seen as reducing your savings on purpose?