Cashing in a Pension Pot at 55 to buy a house while on benefits

[unclebulgaria67]

Surely, if you withdraw money from a private pension, if you have money exceeding a certain amount ( £16k ? ), then you would not qualify for any benefits. If you used the money to buy a house, rather than pay rent, you are then using money to invest in property, rather than support your living costs.

[unclebulgaria67]

Ask DWP,

but i thought that if you obtained money from any source and it was above a certain level, you are then not eligible for any benefits.

 

You are expected to use the money to pay for all living costs including rent.

 

Only once the money reduces below the relevant amount, would you be entitled to apply for benefits.

 

Whilst i agree that buying your own home would reduce any draw on housing benefits and other benefits in the long run, like many things government are involved with, the rules they apply are not born out of common sense.

[unclebulgaria67]

Which is why you need to go through your exact situation with a full review so you know the way forward.

 

As you say it should only be means tested benefits that are affected by drawing a private pension early.

 

Is there a legal process, where your private pension company could transfer the money to buy a house, without you having any access to the money and DWP would be happy ?