Impaired life pensions - How can I find out what I could get?

welshtony

I am a member of a company final salary pension scheme.

I have just been diagnosed (age 55) with Type 2 diabetes, and already am taking tablets for cholesterol and hypertension (blood pressure). I have had a loading on my company life assurance for a few years now.

With the diabetes diagnosis, I would consider taking early retirement, and am wondering whether I could get an enhanced early retirement pension for my various ailments, and, if so, what sort of enhancement might be available (as the discount for a 10 year early retirement would be about 64%)?

And, lastly, is it likely that, if enhancement is available, I could do this via the company scheme, or would I have to take a transfer value and deal with another insurer on a personal basis?

dunstonh

With the diabetes diagnosis, I would consider taking early retirement, and am wondering whether I could get an enhanced early retirement pension for my various ailments, and, if so, what sort of enhancement might be available (as the discount for a 10 year early retirement would be about 64%)?

You will have to ask to pension administrator as its a final salary scheme. You could ask them for a transfer value as well as that would be what any annuity would be based on.

And, lastly, is it likely that, if enhancement is available, I could do this via the company scheme, or would I have to take a transfer value and deal with another insurer on a personal basis?

Its certainly a possibility that an enhanced annuity is an option for you under transfer with immediate commencement but I doubt it would be the best option. What you would lose in transfer value would have to be taken into account and weighed up against what the company scheme pays you.

Diabetes, cholesterol and blood pressure would get you a slightly higher annuity rate but I would put money on it being less than the defined benefit of the final salary scheme. (pure guesswork as we dont know your scheme details).

welshtony

dunstonh wrote: »

You will have to ask to pension administrator as its a final salary scheme. You could ask them for a transfer value as well as that would be what any annuity would be based on.

Its certainly a possibility that an enhanced annuity is an option for you under transfer with immediate commencement but I doubt it would be the best option. What you would lose in transfer value would have to be taken into account and weighed up against what the company scheme pays you.

Diabetes, cholesterol and blood pressure would get you a slightly higher annuity rate but I would put money on it being less than the defined benefit of the final salary scheme. (pure guesswork as we dont know your scheme details).

Thanks. I'll talk to the administrator.