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