ill health retirement

muswellblue

Hi, 

I may have to give up my job due to ill health. I have a mortgage, do I have to inform my lender if I do have to give up my job, even if I will still be able to make the payments for the foreseeable future? Would they change any of the terms or conditions? Or would they be ok as long as I’m still making the payments on time?

thanks for any advice. 

MWT

You have no obligation to inform your lender, just keep making the payments and all remains the same.

gwynlas

If you can afford the payments there is no need to inform the lender, they have the security of the property.

If in the future you have difficulties in making payments you could perhaps approach them regarding options.

Are you able to take ill health retirement and will this lead to a payment of lump sum or pension?

muswellblue

gwynlas said:

If you can afford the payments there is no need to inform the lender, they have the security of the property.

If in the future you have difficulties in making payments you could perhaps approach them regarding options.

Are you able to take ill health retirement and will this lead to a payment of lump sum or pension?

I’ve been through HR at work due to amount of time off sick, which they understood and have tried to help me as much as they can. We discussed ill health retirement as an option. I don’t want to do it unless I absolutely have to and am trying to delay it as long as possible. I’m almost 52. 

I have a final salary pension that I no longer contribute to, i won’t touch that. I have a defined contribution pension that I pay into now, I have contacted the provider and as long as I have medical evidence they said there shouldn’t be a problem with me getting it before I’m 55. I’m regularly in contact with my hospital/GP and the medical evidence won’t be an issue. 

I have spoken to pension wise about all of this. I would probably do drawdown and the 25% tax free lump sum would keep me going either till I’m 55 or sell the house and downsize. 

MWT

muswellblue said:

I have spoken to pension wise about all of this. I would probably do drawdown and the 25% tax free lump sum would keep me going either till I’m 55 or sell the house and downsize. 

Probably time to speak to a good financial advisor as although pension wise are helpful when explaining the options, they are not able to give you direct advice on how to use the options you have.