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Thread: Contribution based ESA and Company Pensions

  1. #1
    nmcmurdo
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    Contribution based ESA and Company Pensions

    When I reach 55 next year, I am contemplating taking my Company pension.
    The bulk of it is a final salary one, though I have a year's money purchase and some AVCs to add to it.
    Presently

    I am in the support group of ESA, contribution based. I also get mid care and mobility component of DLA, whish I realise will be swallowed up in the new Universal Credit, which is getting underway thought I believe the Contributions based ESA does not come under this.

    I would be grateful if anyone can advise me if taking my company pension will have any bearing on my ESA.

    Many thanks

    Neil

  2. #2
    Senior Member
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    May 2012
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    yes £85 per week is disregarded anything over will reduce your esa by 50p for every £1

  3. #3
    Hi saw your post and thought I'd share my experience. I have a final salary pension having retired at 45 last year. Applied for the contribution based esa based on my NI contributions and basically my pension cancelled every penny I may have been entitled to if I had no pension. I later went into the middle esa group and for a few months I've been getting just over £7 a week which I think ends soon, not really sure what happens then. Garth

  4. #4
    Senior Member
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    To my understanding DLA/PIP are unrelated to Universal Credit and will not be affected by it, should it ever be properly introduced.
    Last edited by Jard; 31-10-13 at 14:08.

  5. #5
    Senior Member Lighttouch's Avatar
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    Contribution based ESA and Company Pensions

    Hi Neil,

    I can throw some light on the subject.

    I had to take medical early retirement at 54. I'm guessing that you aren't working now or you've been ill over 6 months and you're on half pay that's why you're claiming ESA.

    As you have a final salary scheme pension you'll be offered various options as to how you can take it. Ask the companies Human Resources for an illustration as to how much you'll get each month. You can take up to 25% as a tax free lump sum.
    You can take all your AVC's as a tax free sum or combine it into your pension too.

    Don't worry about DLA as that's not means tested and I wouldn't worry too much about Universal Credit as it's a total shambles and has been put on hold.

    Your pension will have a baring on your ESA as mentioned above. What you need to do is also check out how many years NI Contributions you have made. You'll need 35 years worth in order to qualify for a full state pension at 66. The DWP can let you know how many you have.

    I was in a similar position to you. I wasn't entitled to anything other than top up NI contributions. As I already had 38 years worth it wasn't worth the hassle of signing on. So I don't show up on any government statistics as I'm now invisible - not working but not a pensioner and not drawing state benefits.

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