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  • FIRST POST
    bgscotty
    Early retirement on medical grounds - a few benefit queries
    • #1
    • 7th Dec 07, 9:21 AM
    Early retirement on medical grounds - a few benefit queries 7th Dec 07 at 9:21 AM
    Hello gang!

    I would be grateful for your advice and comments on my specific query and situation.

    On 19 October 2007, I took early retirement from employment on medical grounds (a progressive neurological condition).

    As part of this, I will receive a pension of 5100 (approx.) a year.

    The pension will be my sole source of income, though I currently receive Disability Living Allowance at high rates for both the care and mobility components.

    I have less than 2000 in savings.

    I have not yet claimed the following benefits, but would like to know:

    - Is the pension, because it is a result of early retirement on medical grounds (a disability), classed as tax-free income?


    - Incapacity Benefit - how does my pension income affect my eligibility to claim? Is Incapacity Benefit classed as tax-free income? how does claiming D.L.A. and Income Support affect entitlement?

    - Income Support - how does my pension income affect my eligibility to claim? how does claiming D.L.A. and Incapacity Benefit affect entitlement?

    - Are there any other issues regarding the combination of D.L.A., Incapacity Benefit, and Income Support?

    All hints and tips gratefully received.

    Thank you in advance for your help.

    Scotty
Page 1
    • seven-day-weekend
    • By seven-day-weekend 7th Dec 07, 9:29 AM
    • 24,916 Posts
    • 44,840 Thanks
    seven-day-weekend
    • #2
    • 7th Dec 07, 9:29 AM
    • #2
    • 7th Dec 07, 9:29 AM
    I make your Occupational Pension to be around £98 per week. Any IB you get will be reduced by 50p in every £1 over £85. (So a reduction of around £6.50 a week).

    Both your pension and IB are taxable. If your total income comes to more than your personal allowance, you will pay tax.

    IB is not affected by savings.

    I don't think you will be eligible for Income Support because your income will probably be too high.

    You may be eligible to claim Council Tax Benefit and, if you are renting, Housing Benefit. These are means-tested benefits.

    Try putting your details into www.entitledto.com

    Hope this helps.
    Last edited by seven-day-weekend; 07-12-2007 at 9:47 AM.
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  • matty31
    • #3
    • 16th Jul 08, 12:49 PM
    early retirement
    • #3
    • 16th Jul 08, 12:49 PM
    I am 54 and have been receiving DLA since 1994 after serious accident left me with pain and mobility problems. Am now diagnosed with ME and want to leave work on health grounds (work 18 hrs per week - but have much time off due to sickness)
    Can I just resign - how will incapacity be affected I have not been to work for 4 months (sick notes provided by doctor)
  • healy
    • #4
    • 16th Jul 08, 1:04 PM
    • #4
    • 16th Jul 08, 1:04 PM
    I am 54 and have been receiving DLA since 1994 after serious accident left me with pain and mobility problems. Am now diagnosed with ME and want to leave work on health grounds (work 18 hrs per week - but have much time off due to sickness)
    Can I just resign - how will incapacity be affected I have not been to work for 4 months (sick notes provided by doctor)
    Originally posted by matty31
    Yes you can just resign and it will not affect any payment of Incapacity Benefit if you qualify otherwise.
  • maxmeg
    • #5
    • 31st Mar 09, 9:24 PM
    Early retirement on medical grounds
    • #5
    • 31st Mar 09, 9:24 PM
    I suffer from angina, cervical spondylosis, IBS, and other less severe health problems. I'm 57 and finding it so difficult keeping working. After a days work I am in lots of pain. I have no private life because I spend most of my "Non Work Time" laid down whilst the pain killers take effect. I have almost constant chest pain. Am I entitled to "go for" early retirement? I have worked for over 40 years. Maybe the question should be "How do I go about it?"
  • Oldernotwiser
    • #6
    • 31st Mar 09, 10:14 PM
    • #6
    • 31st Mar 09, 10:14 PM
    I suffer from angina, cervical spondylosis, IBS, and other less severe health problems. I'm 57 and finding it so difficult keeping working. After a days work I am in lots of pain. I have no private life because I spend most of my "Non Work Time" laid down whilst the pain killers take effect. I have almost constant chest pain. Am I entitled to "go for" early retirement? I have worked for over 40 years. Maybe the question should be "How do I go about it?"
    Originally posted by maxmeg
    Retiring early is purely a matter between you and your employer. It might be worth discussing this with HR and/or your union, if you're a member.
  • maxmeg
    • #7
    • 31st Oct 09, 9:53 PM
    • #7
    • 31st Oct 09, 9:53 PM
    Retiring early is purely a matter between you and your employer. It might be worth discussing this with HR and/or your union, if you're a member.
    Originally posted by Oldernotwiser
    Sorry for not replying sooner. Hospital in patient for a while then computer crash!! I am a member of a toothless union who don't seem to care! They are too busy with bigger fish (Quote!!!). Not contacted HR yet but have appt with Occ Health. I'd love to keep working but I feel I am a danger to our patients, as well as myself! I could manage an easier less lifting job but can't travel to other areas! Bit of a different situation, but are we not supposed to be treated as individuals? Thanks for reply.
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