Retiring on medical grounds

milliman11

I suffer from inflammatory rheumatoid arthritis and have had several joint replacements. I have quite a few more surgeries on the cards and also have many days where the sheer physicality of getting myself into work and then lasting the day takes every scrap of energy I have.
I'm now thinking the time has come for me to look into retiring on health grounds. I would receive a pension from work but would I be entitled to other benefits? Would I be entitled to apply for DLA or the care one, and how much would I get in benefits (Is it called ESA now?) for not being able to work?
I've worked all my life and have never claimed, and have tried to keep going but I feel so poorly a lot of the time now and know I'm no longer doing a good job at work which breaks my heart.

MrsManda

DLA is based on mobility and/or care needs so if you have these needs you can claim DLA whether you're able to work or not.
The basic eligibility criteria and how to apply can be found on the direct.gov website here: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Disabledpeople/DG_10011816

Providing you're younger than the state pension age you can claim ESA if you are unable to work due to illness.
What you receive may depend on your weekly pension payment as ESA payments may be reduced if you receive over £85 a week in pension payments. Reductions are half the excess so if you recieve £90 a week then your ESA payment would be reduced by £2.50
http://www.dwp.gov.uk/docs/dmgch44.pdf page 171

milliman11

Thanks for that info Mrs Manda. I'm really confused though. Does anyone know how a private pension would affect benefits? If its going to drastically affect them, I wonder why I've been paying into a pension scheme for 20 years? Also has anyone claimed whilst suffering from Arthritis or similar?

rotoguys

milliman11 wrote: »

Thanks for that info Mrs Manda. I'm really confused though. Does anyone know how a private pension would affect benefits? If its going to drastically affect them, I wonder why I've been paying into a pension scheme for 20 years? Also has anyone claimed whilst suffering from Arthritis or similar?

That's what I have been saying to our friends. There is no advantage in working or having a works pension or even the Old Age Pension anymore, as you get the same money through pension credit.
What is the point of having a works pension paying £100 a week when all they will do is knock the £100 off the pension credit payment so you end up with the same amount in the bank.

Crazy

Oldernotwiser

milliman11 wrote: »

Thanks for that info Mrs Manda. I'm really confused though. Does anyone know how a private pension would affect benefits? If its going to drastically affect them, I wonder why I've been paying into a pension scheme for 20 years? Also has anyone claimed whilst suffering from Arthritis or similar?

As something you've paid for yourself, your pension would be relatively secure and you can carry on claiming it if you find yourself able to work in the future. Benefits can be withdrawn at any time or you might find yourself ineligible in the first place and you're very much at the whim of government policy.

Much better to be independent.

Bigmoney2

milliman11 wrote: »

I suffer from inflammatory rheumatoid arthritis and have had several joint replacements. I have quite a few more surgeries on the cards and also have many days where the sheer physicality of getting myself into work and then lasting the day takes every scrap of energy I have.
I'm now thinking the time has come for me to look into retiring on health grounds. I would receive a pension from work but would I be entitled to other benefits? Would I be entitled to apply for DLA or the care one, and how much would I get in benefits (Is it called ESA now?) for not being able to work?
I've worked all my life and have never claimed, and have tried to keep going but I feel so poorly a lot of the time now and know I'm no longer doing a good job at work which breaks my heart.

If your pension is sufficient to live on then you wouldn't need to claim benefits.
Are you sure you will bget this 'il health' pension as they are not as easy to get as they used to be. If you are over 55 you can apply to take your company pension early with what ever reduction is applied by the scheme rules.
Have you considered reducing your hours if your finding it difficult to last the whole day.

milliman11

I'm pretty sure work are encouraging me to take retirement on ill health grounds. I have missed half of this year due to surgeries and have more surgeries on the cards. The pension however wouldn't be enough to live on even if I cut back to bare minimum which I've been doing for a while anyway. I've worked for all my life and would have carried on but it's proving too difficult.

rogerblack

milliman11 wrote: »

I'm pretty sure work are encouraging me to take retirement on ill health grounds. I have missed half of this year due to surgeries and have more surgeries on the cards. The pension however wouldn't be enough to live on even if I cut back to bare minimum which I've been doing for a while anyway. I've worked for all my life and would have carried on but it's proving too difficult.

You should understand the criteria for ESA -
http://www.dwp.gov.uk/docs/m-06-11.pdf may be useful.

ESA is not granted because you're unfit for work.
It's granted as you pass the ESA test.

My typical example is someone who gets an epileptic fit once a week, with plenty of warning, and is otherwise well-educated and employable is entitled.

Someone in a wheelchair, who mutters to themselves all the time, can do little more than learn to operate a washing machine and understand simple messages, is not.

tanith

I claimed the old Incapacity Benefit when I had to take Ill-Health Retirement for Osteo-Arthritis as I was physically unable to do my job anymore. I had to claim till my State Pension kicked in but I did lose some of my NHS pension half of anything over £85 I think it was. It does seem a lot more difficult to get the new benefit ESA as you have to jump through a seemingly endless line of hoops to claim it. If I didn't have my NHS pension I would of had to rely on my husband to support me or claim other benefits , paying into your pension means you at least can support yourself and not rely on the state to do it for you. I take it you're not anywhere near to State Pension age?

ShockingPink

Hiya Milliman. I have rheumatoid arthritis and was awarded ill health retirement late last year (after an appeal). While I was working I did receive DLA, which isn't means tested, for 10 years - I still get it now. If you have mobility and care needs you should apply now. As for ESA, contributions based isn't means tested (so any savings won't affect it) but pension income of over £85 a week is taken into account. I now owe quite a bit of money to the DWP as I got back-pay when I was awarded my pension. But I've already been taxed on the ESA I received so now have to try to get that back! Bureaucratic nightmare, especially I you're not used to dealing with benefits and tax.

Anyway - good luck, but do get union or other advice about the occupational pension before you burn your boats.

Oldernotwiser

milliman11 wrote: »

I'm pretty sure work are encouraging me to take retirement on ill health grounds.

They may well b but that doesn't mean that you have to go along with it or that you'll be able to claim an ill health pension.

If you're in a union, now is the time to involve them.