Your Health can affect your Pension Choices
If you have a health condition,
reached age 55 and some pension
do you know how your pension
contracts will allow access later.
choices may be affected?
But if you are too ill to work your
Argyll and Bute Citizens Advice
pension provider may allow you
Bureau says that poor health can
take your pension before age 55,
mean that you have more to consider
although it is up to your provider
about your pension options. If you
to decide this and will depend
are too ill to work you may be able
on their definition of ‘ill health’.
to access your pension savings
“If you’re seriously ill, special tax
earlier than normal. An adverse
rules might apply if you’re expected
health condition could also work to
to live for less than a year which
your advantage even if you are not
may see you being able to take
allowed early access. You may be able
your whole pension pot tax free.
to get a better income from your
You would need to be under age
pension and serious ill health could
75 and your total pension savings
allow you take your pension tax-free.
must be under certain statutory
Claudia Albrecht, Pension Wise
limits. Some providers may
guidance specialist at Argyll and
allow limited access to your pot
Bute Citizens Advice Bureau says:
immediately and keep the rest to
“Knowing how your pension could
provide for your spouse or partner.
help you when you are ill could
Check the terms of your pension
be crucial to coping with illness.
by speaking with your provider.
“Health conditions can allow you
“Even relatively minor ailments
access your pension earlier than
could be advantageous if you are
normal – you currently have to have
considering taking an income from
your pension after age 55. ‘Enhanced’
or ‘impaired’ annuities may pay
more than a standard annuity if you
smoke or have a medical condition.
“Whatever your state of health is you
will of course need to think about
whether you want a cash sum now or
a type of income if you are thinking of
taking your pension. You’ll also need
to think about how you want to leave
money behind if you die. You can get
to know your pension options and
how they can be affected by your
state of health by booking a free and
impartial Pension Wise appointment
at your local Citizens Advice Bureau.”
Anyone aged 50 or over with a
defined contribution pension
scheme is eligible for a Pension
Wise appointment. Call Pension
Wise on 0800 138 3944 or go online
at www.pensionwise.gov.uk to
book your free appointment.
Or contact your local Citizens
Advice Bureau to find out more.
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