After you or your partner reach State Pension age, any money either of you take out of your pension pots and any money left in the pension pot owned by the person over State Pension age will be taken into account when your income is assessed.
If you have £10,000 or less in savings or investments (including your pension pot) it won’t affect how much Pension Credit you’ll receive. But you might get a reduced amount if you have more than £10,000 saved.
For every £500, or part of £500, of pensions or savings you have over £10,000 – you’ll be treated as having an income of £1 a week. This is added to any other income you have, such as a pension.
For example, you’re 67 and applying for Pension Credit. You have a pension pot of £40,000 and have taken a lump sum of £10,000 from your pot. Your remaining pot is £30,000. Because you’re past State Pension age, both amounts will count when you’re assessed for benefits.