Money released from your home and left in a bank account is capital, and capital is assessed for means-tested benefits. This sets out the published rule, does the arithmetic on it, and says who can check your own position for free.
Money released from your home and left in the bank is capital, and capital is assessed. It is possible to release money you did not need and lose part of a benefit you were relying on.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
The State Pension is not means tested. It does not depend on your savings, your capital or your income, and money released from your home does not change it. This is the fear people most often arrive with and it is misplaced.
“If you have £10,000 or less in savings and investments this will not affect your Pension Credit.”
“If you have more than £10,000, every £500 over £10,000 counts as £1 income a week.”
GOV.UK, Pension Credit: eligibility, opened 6 September 2026
Pension Credit tops weekly income up to £238 for a single person and £363.25 for a couple, on the same page. Deemed income counts against that.
Release £50,000, leave it in the bank, and the published rule treats you as having £80 a week of income you do not actually receive. Against a benefit that tops income up to £238 a week, that is a third of it.
| If you held | Deemed a week | A year |
|---|---|---|
| £10,000 | £0 | £0 |
| £20,000 | £20 | £1,040 |
| £30,000 | £40 | £2,080 |
| £50,000 | £80 | £4,160 |
| £75,000 | £130 | £6,760 |
| £100,000 | £180 | £9,360 |
Not everything is, and the distinction matters more than most people realise. Two of the five below are unaffected by money entirely.
Spending the money on something real changes the picture, because what counts is what you are holding. But money moved or given away specifically to keep a benefit can be treated as though you still had it. That rule exists precisely to catch this, and it is one of several reasons this needs somebody qualified rather than a web page.
A benefits check costs nothing and takes about half an hour. Do it before you decide anything, not after: two of the four below have no interest whatsoever in whether you take a plan out.
Free, independent, and they do benefit checks as a matter of routine. The obvious first call and it costs nothing.
Free benefits checks specifically for older people, and they know the interaction with care funding.
The only source for its own Council Tax Support scheme, because the rules are set locally.
Required to consider this before recommending anything. Ask them to show you the effect in writing.
Whether you would lose a benefit. That depends on your whole financial position and it is a benefits calculation, not something a page can do. We have shown you a published rule and the arithmetic that follows from it. What it means for you needs somebody qualified, and the good news is that it is free.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
Start with the first one. If you are not claiming anything means tested, most of this page does not apply to you.
Am I claiming anything means tested at the moment?
Start here. If the answer is no, most of this page does not apply to you, and it is worth ten minutes to find out.
What would my deemed income be if I held the money released?
The published rule makes this arithmetic. Ask for it in writing before you decide anything.
Does my council's Council Tax Support scheme treat capital the same way?
Only your council can answer. The schemes are local and they differ.
Would drawing the money in stages change the assessment?
What is assessed is what you hold. A reserve you have not drawn is not money in your account, and this is worth asking about specifically.
Have I had a free benefits check from Citizens Advice or Age UK?
Independent, free, and they have no interest in whether you take a plan out. Do it before, not after.
Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.
No. The State Pension is not means tested. It does not depend on your savings, your capital or your income, and money released from your home does not change it. This is the fear people most often arrive with.
GOV.UK says that if you have £10,000 or less in savings and investments this will not affect your Pension Credit, and that if you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
The published rule treats you as having £80 a week of income you do not actually receive. Pension Credit tops weekly income up to £238 for a single person, so deemed income of that size counts against a large part of it.
Spending it on something real changes the picture, because what counts is what you are holding. Money moved or given away specifically to keep a benefit can be treated as though you still had it.
Citizens Advice and Age UK do free benefit checks as a matter of routine. Your local council is the only source for its own Council Tax Support scheme, because those rules are set locally. An adviser is required to consider this before recommending anything, and you can ask them to show you the effect in writing.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
One qualified equity release adviser. They will go through your figures and tell you if there is a better answer. It costs nothing and commits you to nothing.
Google Analytics, Microsoft Clarity and Vimeo. Say no and none of them loads. What each one stores, and what Microsoft use theirs for.