Can someone defer their occupational pension for 1 year, they are due to be 65 in 2024 and have a pension pot of £20,000 if taken in lump sum, not sure of monthly income, will be checking this. They are on PIP which i know will not be affected, and ESA due to disabilities, can they continue receiving ESA? if they take the lump sum that would wipe them off ESA, but what about the monthly income which I assume won't be a huge amount, they are checking this at present. Or are they allowed to defer it without any penalty to their ESA until they reach 66 and get SRP
Occupational pensions are defined by a contract between the claimant and the pension provider so there is no way that we can offer any advice on this situation, they need to contact the supplier and ask them if it is not clear from the pension contract itself.
If it can't be deferred then it will be treated as capital and/or income for Income Related ESA, if it is Contribution Based ESA or New Style ESA then the capital value will be disregarded but any pension income over £85/week will incur a deduction of £1/week for every £2 in excess.
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Gordon
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