Ill-Health Early Retirement: will my (lack of) sick record make a difference?

[HoBoPeep]

Unfortunately I have been unwell for the last couple of years and have been left with a permanent disability as well as a number of health conditions which are unlikely to improve. My employer have offered reasonable adjustments but it's just getting harder and harder to do my job. I am thinking of handing in my notice but would like to ask them about the possibility of ill-health retirement.

I took one period of long-term sick leave at the beginning of my illness but since then my immediate boss (who is very supportive) has allowed me to be very flexible with my working hours. He very rarely logs me as being off sick on our work system (I won't usually take a full day off but will frequently have to work a shortened day because I am not well), and because I only work for him, no-one else is really any the wiser. I make up the time whenever I can and cover all of my responsibilities to a high standard.

While I am really grateful to him for being so accommodating, I am wondering if this may count against me if I were to apply for early retirement on the grounds of my health? If it looks like I have barely been off sick ?

Have you looked at the criteria you need to meet to qualify for ill health retirement? It's not easy to get. Usually requires an occupational health doctor assessment and reports from treating consultants.

If you are under 55 it will be difficult. The age limit is restricted by law, not by your employer, so typically you cannot access retirement below age 55 unless a medical professional confirms that you are too ill not just for your current job, but for any job.

If you are over 55 it may be your employer who decides, the trustees, or both together. It depends on the rules of the scheme. I would contact your pension administrator first to ask them to check what the process is.

I’ve literally just been through this process myself. Does your company record sickness via Hr or is it just through your manager?
with me, I had done through the NHS to find I had psoriatic arthritis and I couldn’t manage my life, I was literally WFH, sleeping at lunch times, exhaustion, days when I just couldn’t function.
i spoke to my GP and rheumatologist and both were prepared to support my application. I was off sick by then, had a period of a few months trying to compared return but I couldn’t cope still.
my employer (university) were happy to support so we applied, it was first turned down as if ivly just started new meds which can turn around my disease by keeping it at bay but not for everyone, so reapplied. By that time I’d been diagnosed with fibromyalgia and chronic fatigue, new reports from the doctors and it went through - I was lucky because my pension scheme gave me my full pension like I’d retired at 65, so 11 years for free!
good luck, but if you can go off sick it shows your co diction means you cannot work, it was ok as I was paid 6 months full salary and 6 months half so it was financially supportive, but honestly the pain and the fatigue were killing me, I wouldn’t have coped much longer and it sounds like you’re perhaps the same so please do all the research as to your pension schemes requirements for ill health and tick off all the things they want to know - good luck!

I haven't for my specific pension provider but have read a lot of general advice. I've had several OT assessments, have cut down my working hours significantly because of my conditions, and am seeing a consultant regularly who I am sure would back up my statements about how my illness is affecting my ability to work.

I am on a defined contribution scheme if that makes a difference. So the difference will be getting access to my "pot" earlier and spreading any draw down over a longer period.

Thank you, your conditions sound quite similar to mine. I have been managing to go along on the reduced hours with additional flexibility but I think unfortunately I need some more significant time off. I've been through the whole phased return thing already and I don't know if I can face it again. I feel like I am slowly sinking, and work is making me more I'll.

Thank you. I could probably do my job if it was for one day a week but I don't think my employer want someone working one day a week.

I know this is just the beginning of the conversation but I was wondering if I need to ask my boss to log back some of my sickness time - or even just go back to our teams chats to make my own log of how often I have had to log off early.

If you’ve already done phased return and reduction of hours and still not coping, time to get yourself moving forwards with the ill health retirement. Also if it’s less than your current income, you can apply for things like PIP or other disability schemes available through the government, plus look into other schemes you may be eligible for like UC (I’m not eligible but it’s worth looking)

Thank you. I thought I was coping but I feel like I am sliding backwards and I am scared that I will damage my health further. If I have to just hand my notice in, then I will.

I'm really glad that your employer were so supportive and that you got a good outcome.

Ah, you have said it is DC so this means there are no trustees and it is nothing to do with your employer.

With a DC pension, you can take it when you like as long as you are over 55. You don’t need to apply for ill health retirement. If you’re under 55 then you will still need a medical assessment. It is a legal requirement so no pension provider will allow you to access your benefits without it. I don’t think they will need to see your record of past sick days. The pension provider will just be looking for the doctor’s confirmation that you qualify for ill-health retirement before 55. But the doctor may use information like your sickness absences on their end in order to provide their statement, I don’t know anything about that side.

You may also have additional benefits with your employer such as group income protection, because DC pensions don’t specifically offer protection for ill health. Definitely worth looking into this. I hope you have something in place, it must be a worrying time.

Thank you, that sounds reassuring. I'm under 55 although not by a huge amount.

IHR is generally a term used in DB pension schemes where you get to draw your pension early, sometimes it being topped up as if you had worked to term, or at least not reduced for early draw.
There's no real equivalent for DC schemes. Some (large) firms have an insurance policy instead, covering long term sick to SPA.
Just starting to draw your DC pension early means it needs to last a long time, have you done the sums? You might be able to claim some benefits between now and SPA.
Do you have a staff manual or intranet type thing you can look on?

Ok good - just so I’m not being misleading, if you turn 55 after 6 April 2028 then the limit is 57, not 55.

But otherwise yes, you should be able to access your DC fund whenever you like as long as you’re over the minimum age. The downside is that it is the same pot of money that you will have to make last longer if you take it earlier, it won’t get any top up as a result of your ill-health, whereas DB schemes usually do give you extra. But you may have separate benefits outside of the pension scheme that specifically look after you in ill-health if you’re lucky.

As usual the devil is in the detail as to what your employer offers. In my last job, before retiring, we had "Permanent Health Insurance" available to anybody who was a member of our DC pension scheme. In the event of you becoming unable to do your existing job because of illness, it would make up the difference between what you were able to earn ( a different role, reduced hours maybe) and your existing salary, until you reached normal retirement age. I know of one instance where it paid out in full (reluctantly - much effort was put into finding an alternative role), but we weren't that big a company, likewise "death in service" paid out once, but not to the same person.

To access a DC pension before age 55, you will need a doctor to sign that you cannot work in your current job. Some pension providers state that you must not be able to work in ANY job so check with your pension provider what their requirements are. Your sickness record at work is irrelevant

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/early-retirement-because-of-illness-sickness-or-disability

I had breast cancer 5 years ago and my colleague was diagnosed a few weeks later (we were both teachers). We were both early 50's at the time.

I went back to work after my treatment but my colleague/friend didn't as she really struggled with her mental health. She tried to get back to work but she just couldn't do it.

She applied for ill health retirement after gathering evidence from her GP, her oncologist, our headteacher and occupational health- it was refused and she just didn't have the mental capacity to challenge it. If she had got it, her pension would have been enhanced.

We have since both taken early retirement. It is incredibly hard to get it.

I read of a headteacher who was slowly going blind and the teachers pension service refused him ill health retirement and suggested he maybe could do online tutoring! Just wow. How on earth could he do that. I since read he has now totally lost his sight. It's just SO wrong.

The only thing you can do is apply, gather as much evidence as you can and be prepared to contest it all the way!

I have taken ill health retirement recently. Age 49.

they did not care about my sick days record.
I have a number of pensions (varied career). I haven’t even tried to access the teachers one as I’m told they are a nightmare.

i get pip and contributions based esa. I have early medical retirement on my private pension which I am drawing down reasonably heavily until I get to state pension age and can access my various db pensions.

You really do need to find out the criteria for your specific pension, and company policy/benefits though.
there may be other elements that you can claim instead or until you can take your pension.
as PP said, some companies have a scheme that allows you to work say 50% reduced hours, and then tops your pay to eg 75% of full time salary.
but if you are really struggling. I would always suggest getting signed off sick and at leant onto sick pay in the short term while you look at what options you might have.
if your sick pay is quite generous, it might be worth asking for your historic sickness to be added in case that helps your claim for early retirement or access to another ill health scheme.
if you I lay get SSP then probably not worth it

Typically ill health retirement is when you cannot return to work and/or life limited confirmed by a consultant. My exh has been retired on ill health grounds but he won’t reach retirement age