Here's the Department for Work and Pensions warning about squandering your pension savings and then expecting to be able to fall back on state benefits:
“Means-tested benefits take into account how much income and capital a household has.
“And if people are found to have deliberately spent their pension in order to get means-tested benefits, then their benefit is reduced accordingly.”
It's understood that if money is released from a pension pot and then spent, these "deprivation rules" may apply regardless of age.
· Benefits affected include:
· Pension Credit
· Housing Benefit
· Jobseeker’s Allowance (income based)
· Employment and Support Allowance (income related)
· Income Support· Universal Credit