cash in pension early in extenuating circumstances

out_of_adversity

Hi guys,I am 35 and 3 years ago I had to leave employment due to severe, complicated and chronic disabilities and health conditions. I had been on the sick for a year and basically I knew I was about to be made medically redundant, the stress was too much for me and I voluntarily put my notice in. Occupational Health agreed this was the best course of action and agreed I would not be suitable for any sort of work in the foreseeable future.
I have a handful of investment properties and try to do freelance work as and when my health allows (and the work is there). My health is now even worse than it was when I left employment and I am finding I am unable to work at the moment. Due to my investment properties, I am not able to claim any benefits (except for DLA which is non means tested and I have claimed for a long time).
I have approx £25,000 in old pensions, this valuation was made last spring and is a combination of 2 pensions I paid into from 2000 - 2009, approx £10,000 in NHS pension and £15,000 in teachers Pensions (England). I have recently had a mental breakdown and on top of my physical disabilities, I have accepted that I can not continue the freelance work I have been trying to do (and work myself into an early grave trying to do).
Just wondered if I can cash the pensions in due to extenuating circumstances. In my opinion, I am already retired (my conditions will get worse as I age) and even so, I have some equity locked into my investment properties, which are interest only buy to lets and I could consider these retirement planning.
I would have no problem getting Doctors to agree I am not able to work for the rest of my life, in fact, they keep telling me not to work and it is me who is determined to at least try and do something. Having access to these pensions now would greatly improve my health and finances.
Any advice gratefully received.

dunstonh

approx £10,000 in NHS pension

NHS pension doesnt have a fund value. Nor does the Teachers pension. So, you cant have £25000 in "old" pensions.

Just wondered if I can cash the pensions in due to extenuating circumstances.

No you cant.

and even so, I have some equity locked into my investment properties, which are interest only buy to lets and I could consider these retirement planning.

Although the pensions are better than the property.

I would have no problem getting Doctors to agree I am not able to work for the rest of my life, in fact, they keep telling me not to work and it is me who is determined to at least try and do something. Having access to these pensions now would greatly improve my health and finances.

you can apply for an ill health pension and if they agree with you and you pass their medical criteria then they may start paying you a monthly income. However, you cannot cash the pensions in.

Having access to these pensions now would greatly improve my health and finances.

Have you considered selling one of the properties?

out_of_adversity

Quote:
approx £10,000 in NHS pension
NHS pension doesnt have a fund value. Nor does the Teachers pension. So, you cant have £25000 in "old" pensions
Last year I looked into moving my pensions into a SIPP (property), this was the figures I was given that could be used towardspurchasing property for a SIPP investment.

Quote:
Just wondered if I can cash the pensions in due to extenuating circumstances.
No you cant.
Didnt think so, but thanks.

Quote:
and even so, I have some equity locked into my investment properties, which are interest only buy to lets and I could consider these retirement planning.
Although the pensions are better than the property.
Thanks, last year I looked at moving the pensions into a property SIPP, but decided to keep them where they are. The properties were foreign investments from one of those investment companies, I trusted the company, but not the political situation in some of the countries I would have been investing in.

Quote:
I would have no problem getting Doctors to agree I am not able to work for the rest of my life, in fact, they keep telling me not to work and it is me who is determined to at least try and do something. Having access to these pensions now would greatly improve my health and finances.
you can apply for an ill health pension and if they agree with you and you pass their medical criteria then they may start paying you a monthly income. However, you cannot cash the pensions in.
Would this ill health pension be with my pension providers or the government?
Quote:
Having access to these pensions now would greatly improve my health and finances.
Have you considered selling one of the properties? I applied to remortgage one of them but was turned down due to my fluctuating self employed income. I would consider selling one of them, might get a valuation and consider this for 2013, although in the long term I am better off keeping it I think.

Thankyou for your reply/advice.

dunstonh

Last year I looked into moving my pensions into a SIPP (property), this was the figures I was given that could be used towardspurchasing property for a SIPP investment.

They are transfer values then. Not fund values and not what the pensions are actually worth in terms of benefit. The "value" is the benefit they provide and that is typically a lot more than the transfer value.

Would this ill health pension be with my pension providers or the government?

It will be with the occupational pension administrators. Not the Govt.

atush

Personally, if you are as sick as you say, I cannot see how extra money could make your health 'better' unless you perhaps needed to fund experimental drugs?

In any case I would go to your pensions administrators and ask for ill health retiral procedures, although you may have harmed your chances by not taking ill health medical redundancy at the time and instead gave your notice.