Ill health retirement

hello2341

Without going into excessive detail, I went through a very dark period over the last few years. I ended up losing my business, friends and family. I went from having a stable income and a future, to losing everything practically overnight. Mostly due to the effects of COVID. While it’s no excuse, as I say, I went down a dark path with drinking and substance abuse. I was homeless for a long period, and the impact of each of these eventually led to the inevitable slow demise of my health. It’s fair to say I’ve caused considerable damage to my body. Some of which I may never fully recover, and other things I’m going to need invasive surgery to repair. I’m thankfully beginning a journey from of recovery. However, on top of all else that has happened, I’m trying to deal with this on UC. Needless to say, going from an income of £2,000+ per month, to trying to survive on £320 is extremely difficult… 

I’m not asking the tax payer to fund my recovery, and until I lost my business, I worked 7 days a week and up to 16 hours a day. I’m only claiming UC because I literally have no other option. 

The damage to my body involves issues with communication due to damage to inner workings of my face, which also prevents me from eating or drinking “normally”. I suffer from depression and anxiety also. 

A few years ago I began saving into a private pension fund with Nest. While it’s not a fortune, it currently sits at around £7,000. I’m 30 years of age, but as the law stands, I cannot access a penny until I’m 55… 

I appreciate that the state may need to safe guard us from ourselves… but when there is no mechanism whatsoever to even go down an appeal route, a case by case circumstantial system that may allow release of a pension dependant on circumstances, that to me feels like a nanny state with more focus on the rich simply getting richer from our hard earned money. God forbid that we be granted access to our money and remove funds from schemes earning the pension leaders millions. 

I have been declared unfit for work by my doctor and I can absolutely confirm that I would not be fit for employment for at least a few years, to recover from surgeries and regain my confidence in life. 

The nest scheme provides two options (which aren’t exactly clear) one says I must die in 12 months… the other says I must never be able to work again… I can’t say I will NEVER be able to work again, but if I continue through the stress and financial hardship I’m currently experiencing, I won’t make it to next year, let alone retirement.

My question is, are there any UK Based pension schemes that provide more fair and reasonable I’ll health options? I came across one with a tier system, that still lets you access X amount even if you can’t work for only 3 years. But that was for governmental schemes only.

any advice would be appreciated 

MX5huggy

Forget about the £7k and concentrate on getting healthy and getting to 55 so you can enjoy it. 

Having said forget it, check which fund it’s invested in? Nest is not expensive once the money is in there but you want to take some risk as you have a 25 year plus investing horizon.

hello2341

MX5huggy said:

Forget about the £7k and concentrate on getting healthy and getting to 55 so you can enjoy it. 

Having said forget it, check which fund it’s invested in? Nest is not expensive once the money is in there but you want to take some risk as you have a 25 year plus investing horizon.

Thank you for the response. However, it’s the stress I’m experiencing from financial hardship that’s preventing my recovery. It’s a catch 22. 

We’re living month to month constantly worrying about whether we can afford the rent. It’s just me and my father. He’s working his behind off to support us both. Our energy bill is nearly topping £500 per month. And we’re struggling. It’s so frustrating that I’ve got money there that could quite literally be a life saver and help me get to a point where I begin saving into a new fund. But I can’t get to that point under current circumstances.

MX5huggy

How is your energy £500 per month? You need to dig into that. That’s more than double the average. 

Albermarle

I would say there is no chance of you getting this £7K, so as said just forget about it .
Sounds like some detailed budgeting could help as a £500 a month energy bill is very high, even with todays prices.
The estimated cost for energy for a 3 bed semi with a family of four, is £200 a month and over the winter this was discounted by £67 a month.
It might be more fruitful to spend some time on the benefits board and make sure you are getting all the benefits/cost of living top ups etc you and your Dad are entitled to .
Benefits & tax credits — MoneySavingExpert Forum

Pat38493

... unless the power usage is due to use of high consumption medical support devices or suchlike.

I agree that it could be good to check on benefits boards as if you are considered as long term sick or disabled, other benefits could come into play as well.

Even if you could get that 7K, it wouldn't last long and you would just be delaying the issue.

That said, energy costs are expected to start coming down in the summer but not to the previous pre Ukraine war levels - last I heard there is a reasonable expectation of around 20% reductions coming in the Summer, but this could of course change depending on events. 

MrsBrooks13

Have you considered applying for PIP? If your ability to communicate, eat and drink is affected (and maybe other daily living activities?) you may be entitled to a non-means tested monthly payment of circa £275 a month. Do have a look at the Benefits section on this forum for further advice.

xylophone

The damage to my body involves issues with communication due to damage to inner workings of my face, which also prevents me from eating or drinking “normally”. I suffer from depression and anxiety also. 

https://www.gov.uk/pip/how-to-claim

https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner