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Pension drawdown regarding means tested benefits
- m2000seaton@aol.com
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3 years 5 months ago #263788 by m2000seaton@aol.com
Pension drawdown regarding means tested benefits was created by m2000seaton@aol.com
Dear members, Can anyone tell me if you can draw down your 1/4 tax free pension or the whole pension with out it effecting my means tested benefits, ESA and HB?
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- Gary
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3 years 5 months ago #263820 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Pension drawdown regarding means tested benefits
Hi Mark
Short answer is no.
Whether it will affect your ESA will depend on the type of ESA you receive, how you take the pension and how much it is?
If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.
If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA.
First, there is an assets and savings rule if you take a lump sum, see
Asset and savings rule for ESA(IR)
Secondly, any regular payments will be deducted £ for £ from any ESA(IR) that you receive.
If the ESA(IR) is fully eroded then you will lose access to passported benefits such as free prescriptions and dental care.
Gary
Short answer is no.
Whether it will affect your ESA will depend on the type of ESA you receive, how you take the pension and how much it is?
If you are only receiving Contribution Based ESA then a lump sum will not affect your ESA but a regular payment will. If the pension is more then £85/week then there will be a £1/week deduction for every £2 in excess of the £85.
If you are receiving any Income Related ESA, either in part or in whole, then it will affect your ESA.
First, there is an assets and savings rule if you take a lump sum, see
Asset and savings rule for ESA(IR)
Secondly, any regular payments will be deducted £ for £ from any ESA(IR) that you receive.
If the ESA(IR) is fully eroded then you will lose access to passported benefits such as free prescriptions and dental care.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: m2000seaton@aol.com
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- m2000seaton@aol.com
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3 years 4 months ago #265237 by m2000seaton@aol.com
Replied by m2000seaton@aol.com on topic Pension drawdown regarding means tested benefits
HI Gary, many thanks for your answer.
I understand your answer, specific I'm on ESA, but in the support group and claiming housing B.
So, If I was to draw down of 6K I'm guessing it would not effect my benefits?
To be honest my total pension is only worth around 9K.
Hope this help with your answer.
Many thank in advance.
Mark
I understand your answer, specific I'm on ESA, but in the support group and claiming housing B.
So, If I was to draw down of 6K I'm guessing it would not effect my benefits?
To be honest my total pension is only worth around 9K.
Hope this help with your answer.
Many thank in advance.
Mark
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- Catherine
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3 years 4 months ago #265239 by Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Catherine on topic Pension drawdown regarding means tested benefits
Hello Mark,
You are right, if you 'only' have 6K in your savings, it does not impact any benefits. Over that amount there is potential for it to do so.
Catherine
You are right, if you 'only' have 6K in your savings, it does not impact any benefits. Over that amount there is potential for it to do so.
Catherine
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: m2000seaton@aol.com
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