ESA and private pension

debbiedonut1959

Hi 
I’m on ESA contribution based and aged 62. I also get PIP. I have a small private pension and I can get a small lump sum out @ £15000 and a weekly pension of @£80.00 
Will
Will I be able to keep my ESA and PIP if I start to get my pension. I had to take early retirement from my work due to ill health. TIA 

poppy12345

First you need to make sure that all of your ESA is contributions based. If any part of it is Income Related then any weekly pension you receive will reduce your ESA £1 for £1. Any lump sime will also affect Income Related ESA and be classed as savings and if that lump sum takes your savings to more than £16,000 then it will stop.

If you claim any means tested benefits such as housing benefit and council tax reduction then these will also be affected.

If all your ESA is contributions based then a lump sum will not be counted and any pension income of up to £85 per week will be ignored, for anything over this there's a reduction of 50p per week.

If your ESA is more than £114.10 per week then it's likely to be part income related.

debbiedonut1959

No it’s definitely contribution based and I’m not in receipt of any housing benefits or council tax reductions. Thanks for your help

debbiedonut1959

I’m going to speak to DWP next week once I’ve got my pension info through 

poppy12345

debbiedonut1959 said:

No it’s definitely contribution based and I’m not in receipt of any housing benefits or council tax reductions. Thanks for your help

Then it will be this here that i advised. If you do take the weekly pension income then you will need to report this to DWP, even though your ESA is CB they still need to know.

However, if your ESA is the old Contributions based and you don't live with a working partner then you maybe entitled to an income related top up on your ESA so it may not be worth taking the pension income. It's always worth getting some expert advice before taking any pension.

poppy12345 said:

If all your ESA is contributions based then a lump sum will not be counted and any pension income of up to £85 per week will be ignored, for anything over this there's a reduction of 50p per week.

If your ESA is more than £114.10 per week then it's likely to be part income related.

JaneDoeJohnDoe

You will need to be in Support group for ESA or else after a year you will not get Contributions based ESA

Alice_Holt

OP -  How much ESA do you receive? 

Is it £114.10 pw ? (see poppy's post above).


What pension will you receive (lump sum and weekly income) if you don't draw it until your official pension age?
Have you had any illustrations from the pension company?

PIP will not be affected.