P6Driver - I understand that is the case and indeed, given it is their lump sum/pension savings they have accrued, what they choose to do with it is up to them. They are no different than the less well prepared/fortunate who didn't have that money saved in the first place. I also understand the State Pension is not means tested (although you need to qualify by paying NI for 33 years for the full amount). The means testing comes under the Pension Credit part of the payment, designed to help those not able to survive on the State Pension they receive. Re the earlier question about service and State pension being X+Y, I think there is a bit of jiggery pokery re the SERPS element so in fact you get X+Y-Z where if you didn't have the service pension you'd get Y+Z?
My old man discovered this on his State pension age and wasn't best pleased!!