60, losing job and not taking pension yet

[IsThisIt2021]

Asking for my parent and can’t find out the answers they need.

Parent is almost 61. Has paid in to a pension all of his working life but has been suffering with his mental health recently. Not to the point of qualifying for PIP etc but enough to prevent him from working. He’s currently on his 3rd sick note from the GP but I know his boss is now getting extremely annoyed at him.

If he loses/quits his job due to being unable to do it anymore, will he be able to submit a claim for any benefits? Will having paid in to a pension (that he planned on taking at 65) affect how much he can claim if anything?
Is he likely to be told to take that pension early despite going to need it in later years?

Sorry for all the questions but I’ve tried searching and can’t seem to find any information on it so hoping someone here knows or has experience of this.
Thank you!

I’ve seen this sister recommended by MNers in the past..l might be helpful.

www.entitledto.co.uk/

Sorry to hear about your dad OP

site not sister. 🙄

Hi, no he will be able to claim new style ESA based on the national insurance he has paid or if he doesn't qualify for that then UC. He won't be told to take his pension early. He should get a fit note too and will eventually be sent for a medical. If he passes a high enough threshold he may get extra money (called limited capability for work and work related activities).

He should try for PIP anyway with the help of citizens advice or welfare rights. Also make sure he claims for his council tax.

Defined Benefit Pension can often be taken earlier than the set retirement age... though that is often age 60. If pension is taken earlier than the schemes normal retirement age, then an adjustment is made, meaning less money but paid out over longer period as being taken early.

He needs to talk to he pension scheme administrators about what his options are for taking the pension.

Then look at what state benefits are available to top up that pension income.

Also look at what other money he has, may not be any but there may be money in other places, such as National Savings, ISA, Personal Pension.

I think he is born in 1961, so state retirement age is 66. So in about 5 years time, he could look at claiming Pension Credit.

You have not told us which pension scheme it is, but if it is Civil Service, then there is an option to retire due to ill health.

www.civilservicepensionscheme.org.uk/your-pension/work-life/illness-and-injury/ill-health-retirement/

Similar may apply for other Defined Benefit pension schemes, so he needs to talk to the pensions administration team about what his options are.

One thing to consider is that if they resign it may impact on benefits. Far better to be dismissed/compromise agreement.

Definitely wait until he is dismissed on health grounds.
They don’t take pensions into account for means testing until you are state pension age.

Just wait for dismissal. He would be entitled for the enhanced job seekers allowance but he will still need to show evidence that he’s applying for jobs & do any training they recommend. It’s pretty easy to show evidence - you can just send his CV off into the void of Indeed or Reed every day for him. But this only lasts for 6 mths. If it’s a long term MH issue and the Gp agrees with that - then far better to claim disability / PIP now. Get some help from the citizens advice bureau to see how you can claim and go from there.

I should point out that with some MH issues (anxiety, depression stress) a new job might be the ticket for recovery. My old boss was suicidal in the job she had before she joined the company we both used to work at, got dismissed anyway, and then without recovering, joined the new company and had a breakdown and they couldn’t help her enough. She’s still with that company twenty years on.

Thank you all for the replies.
Good idea about contacting citizens advice bureau and I think it’s likely he will be dismissed if he gets another sick note from the GP but hopefully the next couple of weeks will see improvements in how he is so may not be needed (honestly I don’t think that’s likely but I’m keeping everything crossed regardless). He’s worked all of his adult life and prior to this hadn’t missed a days work in 25 years +. He’s a proud man and I know he’d hate claiming benefits / job seekers but thank you all again for the replies