What is ill health retirement?

Ill health retirement encompasses two aspects of retirement, depending upon the severity of the illness.

Firstly, a severe illness or disability that prevents the individual from ever again working – working in any capacity, not just their own job – but not immediately life-threatening, will enable that individual to access their retirement benefits early, i.e. prior to age 55. However, there are no other advantageous terms, such as enhanced tax-free lumps sums, although, if the illness or disability is life-limiting, then an enhanced retirement annuity may be available.

Secondly, a life-threatening illness or disability can result in the death benefits under a pension scheme being paid-out to the individual in advance, generally as a tax-free lump sum.

What next?

Talk to me today if you are in ill-health and want to access your pension savings.

    - Retirement

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    About Clive Barwell

    Clive Barwell is one of the most experienced and qualified financial planners working in the later life market today, he specialises in advice and guidance for the over 55s. To ask Clive a question, please email him at info@clivebarwell.co.uk. Alternatively, you can follow Clive on Twitter, connect with Clive on LinkedIn or see Clive's profile on Google+.