Absolute plonker here who needs help. SHPS deferred benefit

2017me

I'm talking plonker! I am a 60 year old woman with a very old SHPS pension, I know its not going to be a great deal of money as it says ... estimated on returned at age 60 a pension each year of £2,713.65.

I have stage 4 breast cancer and have a completed SR1 form from my oncologist.  I still have 4 years on my mortgage so would like to cash everything in now and throw it at the mortgage if possible. 

Have you any idea on roughly how much I might get? 

Thank you in advance. 

Marcon

2017me said:

I'm talking plonker! I am a 60 year old woman with a very old SHPS pension, I know its not going to be a great deal of money as it says ... estimated on returned at age 60 a pension each year of £2,713.65.

I have stage 4 breast cancer and have a completed SR1 form from my oncologist.  I still have 4 years on my mortgage so would like to cash everything in now and throw it at the mortgage if possible. 

Have you any idea on roughly how much I might get? 

Thank you in advance. 

 I'm so sorry to read your post. The only possible way to know is to ask the scheme whether you can commute your whole pension on grounds of serious ill health. This assumes that it hasn't yet come into payment even though you've reached age 60, and also assumes the scheme offers this option under their rules (it is only available when there is medical evidence to certify that life expectancy is no more than 12 months and the rules of the particular scheme allow it).

2017me

Marcon said:

2017me said:

I'm talking plonker! I am a 60 year old woman with a very old SHPS pension, I know its not going to be a great deal of money as it says ... estimated on returned at age 60 a pension each year of £2,713.65.

I have stage 4 breast cancer and have a completed SR1 form from my oncologist.  I still have 4 years on my mortgage so would like to cash everything in now and throw it at the mortgage if possible. 

Have you any idea on roughly how much I might get? 

Thank you in advance. 

 I'm so sorry to read your post. The only possible way to know is to ask the scheme whether you can commute your whole pension on grounds of serious ill health. This assumes that it hasn't yet come into payment even though you've reached age 60, and also assumes the scheme offers this option under their rules (it is only available when there is medical evidence to certify that life expectancy is no more than 12 months and the rules of the particular scheme allow it).

Thank you for that, yes it does offer that option.  I have sent off a request but think it will just say the same but with a different amount .  Its the bit when it says a pension each year for a blah blah sum.

How many years do a company pay a pension up front for if you are claiming it in one lump sum? if that makes any sense. 

Marcon

2017me said:

Marcon said:

2017me said:

I'm talking plonker! I am a 60 year old woman with a very old SHPS pension, I know its not going to be a great deal of money as it says ... estimated on returned at age 60 a pension each year of £2,713.65.

I have stage 4 breast cancer and have a completed SR1 form from my oncologist.  I still have 4 years on my mortgage so would like to cash everything in now and throw it at the mortgage if possible. 

Have you any idea on roughly how much I might get? 

Thank you in advance. 

 I'm so sorry to read your post. The only possible way to know is to ask the scheme whether you can commute your whole pension on grounds of serious ill health. This assumes that it hasn't yet come into payment even though you've reached age 60, and also assumes the scheme offers this option under their rules (it is only available when there is medical evidence to certify that life expectancy is no more than 12 months and the rules of the particular scheme allow it).

Thank you for that, yes it does offer that option.  I have sent off a request but think it will just say the same but with a different amount .  Its the bit when it says a pension each year for a blah blah sum.

How many years do a company pay a pension up front for if you are claiming it in one lump sum? if that makes any sense. 

It makes sense, but it doesn't usually work quite like that, certainly in the private sector. Generally the scheme's actuary would be asked to calculate the overall value of your own pension (the 'capital value') and that's the amount which would be paid out, normally free of tax. What I can't tell you is the basis of the actuary's calculation; some schemes provide for this to be done on a 'normal life expectancy' basis, others take into account a shortened life expectancy.

You do need to be absolutely clear that you are asking for figures in relation to 'serious ill health commutation', which is NOT the same thing as 'ill health early retirement' (the latter assumes life expectancy is greater than 12 months, in which case you could take some tax free cash, but usually not the whole lot). If you aren't sure that you've made that crystal clear, go back and ask them to confirm they have understood that is what you are requesting.