If you have a life limiting illness, how does this effect when you can access your pension?

[frumpety]

If you have been diagnosed with a life limiting illness, does this have any impact on when you can access your pension and how much you can take out of it ?

Yes. Terms depend on your pension. Do you have your scheme documents?

Palavah I think the person involved does , it isn't actually me.

It would be worth enquiring with the scheme provider and checking the scheme documents.

www.google.com/amp/s/www.moneyadviceservice.org.uk/en/articles/early-retirement-because-of-illness-or-disability/amp

Its a bit sensitive as it is DH, I don't think he has completely come to terms with his diagnosis or fully understands the ramifications as far as longevity is concerned, although we are talking potentially up to 5-10yrs, at a push, so not sure if that makes a difference re the pension ?

I just want him to get to do the things he has always wanted to do

Thank you Palavah I really appreciate your help, it doesn't help he was made redundant 4 days before his diagnosis ! Even if he could take out a bigger lump sum earlier it would help him achieve some goals.

How old is he OP? What type of pension is it? (Company E.g. BT scheme, or Personal/workplace E.g. L&G/ Scottish Widows)

Very sorry to hear this.

He is 58, 59 this year. I am not sure what sort of pension it is, he worked for the company for about 30 odd years, but the scheme changed in that time, as so many did.

I'm so sorry about your husband's diagnosis.

If you can gird yourselves to have a conversation about the paperwork then that would be good. Hopefully there are some policy documents with phone number/website. When you call up ask to speak to the vulnerable customer team.

As he's already over age 55 there won't be an issue accessing his pension benefits from an HMRC point of view.

Whether there are early retirement penalties applied for accessing benefits earlier than the scheme's normal retirement age will depend entirely on what the scheme rules say. There will also be something in the rules about whether the scheme trustees have any discretion to make enhanced pension payments in respect of serious ill health, or allow it to be commuted into a lump sum. This is assuming that it is a final salary/Defined Benefits scheme.

If it's a Defined Contribution type of scheme then it is likely that he could access his benefits now without any penalty.

Once you've been able to have a look at the scheme paperwork or contact the scheme administrators, it would also be worth your while booking an appointment with Pension Wise, the government's free service to obtain guidance on pension options. They cannot give personal advice but will give you a steer, and after that you can decide if you need to speak to a regulated pensions adviser who will look at your whole situation and help you plan for the future.

Do also consider that a DB scheme could well be worth much more to you and your husband if transferred out. This is a very big step and needs advice, but it really should be explored along with your other options.

If the pension has changed during that time it may well mean he has DB and Occ DC and a PP (slight splitting of hairs on the last 2, but there are differences).

Thank you so much for your advice Sunseed and Weirdlynormal