cash from pension due to ill health under 50

paul-sam

Hi all

I am new to the site and need some advice. I am 49 years old and have been diagnosed with throat cancer with a poor prognosis, The chances of me reaching 65 are almost non existent. I have 4 pension schemes with a cash transfer value totalling approx £100k.

Can i get my hands on my pension cash now as i am self employed with no savings and some fairly hefty debt.

Any advice would be appreciated

Thanks

Lokolo

You should check with your provider as they will have details about cashing in early due to ill health.

JOHNGT

Paul-sam,

The rules for ill-health early retirement (taking benefits before the normal minimum age of 55) are set out here:

http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM08100070.htm

Pensions advisory service also has some useful info

http://www.pensionsadvisoryservice.org.uk/dealing-with-complaints/ill-health-retirement

Once you have read this, as Loloko says, speak to your pension provider(s)

dunstonh

Can i get my hands on my pension cash now as i am self employed with no savings and some fairly hefty debt.

If you have a spouse/dependents it may actually be better not to take the pension.

It's not a pleasant subject but if the debts are yours, they can only be repaid out of your estate. If you have limited assets, then they are effectively written off on your death. The pension fund does not form part of the estate and can be paid out in full tax free to a nominated beneficiary. They cannot offset the debts against those. If you commence the pension early, not only will the lump sum be included in the estate but also the death benefits will not be as good for spouse/partner.

So, you have to weigh up the options of what you want now for yourself and what you want after for your spouse/partner if one.