Accessing pension while in receipt of IR ESA.

TickingClock63

Hello everyone. I am a single 60 year old woman and I’m in receipt of IRESA. 

I have a defined contribution pension worth £23k and I wish to withdraw the maximum tax free lump of approximately £5750.00. 

In 2018 I accessed another defined contribution pension- i took £12k as a tax free lump sum and I receive a monthly income, and my ESA is reduced accordingly. 

I have no other savings so I know that I will remain below the £6k threshold if I take the £5750 lump sum. 

What I would like to know is if I take the lump sum, will the remainder of the pension (approximately £17k) be treated as capital?  (Even though it’s still with the pension provider) 
Many thanks

Albermarle

Not as far as I know. However when you reach state pension age, a nominal income from the pot will be taken into account ( as if you were actually taking a pension income even if you are not).
However from £17K this will be pretty small . Maybe £700 pa ? 
I am not an expert so wait for other comments.

molerat

Probably better suited to the benefits board, I will report for moving as the experts will mor likely see it over there.

xylophone

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits



https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs91-pension-freedom-and-benefits.pdf

poppy12345

Providing your total savings/capital are below £6,000 when you take the lump sum it will have no affect on your means tested benefits. 

The remainder of your pension pot will be disregarded as you’re still under state pension age.