Terminally ill - pension as lump sum?

FleurDuLys

Hi,

I'm 35 and have stage 4 cancer, so I am supposedly terminally ill (though I fully intend to beat the odds).

Prior to having to stop work through ill-health, I worked as a software engineer/business analyst for 13 years after graduating and I was paying into my company's pension scheme all that time. I've heard that I may be able to take the money I paid in as a lump sum - is that correct? That money would be very, very helpful to me right now! Also I'm getting married very soon and it would allow me to buy my husband-to-be something amazing for a wedding present.

If I can't take this money as a lump sum, what would happen to it? Would my husband receive it as a lump sum as part of my estate, or would he benefit from it when he retires? Sorry to be so ignorant, pensions are not something that I've really had to think about yet

Many thanks,
Fleur

carpedieme

Sorry cant offer any advise just want to send a virtual hugx

claretmatt

Hi Fleur

It is possible to have the money paid as a lump sum.

There are 5 conditions that need to be met. I would expect you to meet 4 of them with the 5th being that the:-

"scheme administrator has received written evidence from a registered medical practitioner confirming that the member is expected to live for less than one year"

Good luck with the wedding.

FleurDuLys

Thanks tons, both of you. It's difficult to believe this is actually happening, it's happened so fast. Ugh.

Your advice is really helpful Matt, thanks! I'm sure my GP will write a letter confirming things, he's already done so for my application for DLA under the special rules. My company was taken over by another company at the time I left (I took voluntary redundancy) so I'll have to do some phoning around to find the right person to talk to.

Cheers,
Fleur

ejlmcdonald

Hi Fleur,

So sorry to hear of your diagnosis. Thought I'd add something to that above. I am 48 and retiring on ill health grounds as I have Parkinson's. I am a deferred pensioner too as I left the company before my diagnosis. It is a final salary scheme. If I die, my husband will get a widower's pension of half the full value of my pension. Whilst a lump sum might be more attractive to you, I don't know your circumstances, it is maybe worth exploring if this is an option for you, especially given your young age.
Good luck with beating the cancer.

theGrinch

you can beat it and you will