Drawing from SIPP before age 55 due to ill-health

username12345678 · 10 January 2018 at 1:49AM

I've looked online and searched threads on MSE to try and find the answer to this but i'm still not entirely clear what the ruling is if you are not terminally ill.

As I understand the terminal illness scenario...

If you have less than 12 months to live and your Dr signs off on this then you can withdraw your entire SIPP.

It is the non-terminal scenario I can't find an answer to...

My employer can no longer keep me on due to illness/disability but this isn't immediately life threatening. Can I start drawing on my SIPP as if I was 55? Or would it be assumed I was employable in some form and so still be bound by the 55 rule?

I'm not ill by the way...just curious.

Kynthia · 10 January 2018 at 10:32AM

I'm not aware of any way you can access your SIPP early due to ill health. If you arebt terminal then you'll still need that money for when you're over 55. If you are too ill to work and your employer doesn't offer medical retirement then you need to look at claiming benefits. The advantage is i don't believe that the money in your SIPP counts as savings which reduce yiur benefits.

atush · 10 January 2018 at 10:58AM

My employer can no longer keep me on due to illness/disability

What is your employer offereing you via your work pension? That may have early retirement due to illness benefits.

If not, you should be made redundant, and get paid redundancy.

Otherwise, benefits. Or an easier job- one that fits with your abilities re your health.

username12345678 · 10 January 2018 at 12:08PM

Thanks for the replies.

squirrelpie · 11 January 2018 at 2:19PM

Or insurance ...

username12345678 · 13 January 2018 at 12:42PM

squirrelpie wrote: »

Or insurance ...

I've arranged cover up to age 55.

£26pm which I thought was pretty good for £3000pm.

Drawing from SIPP before age 55 due to ill-health

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free