Up front - I’m not an IFA nor qualified to give advice in any way - I just thought I’d relate my experiences.
I was made redundant by my caring employer, and because of my secondary diagnosis and general state of weakness decided to try and take my pensions on ill health grounds. I had 3 what I thought were ‘gold plated’ final salary pensions, and 1 small fund from a self employed period. I just took the final salary pensions as offered - none were enhanced because no-one would say I had less than a year to go (which I’m happy about!) but I have them and they help a lot.
I got a value from the small fund - about £17K - of about a pension of £900 per year. Wasn’t too impressed, and in chatting with my former union rep - wish I’d done so earlier - he spoke of ‘impaired life pensions’ which some companies offer. I got in touch with an IFA and quite easily the £900pa was transformed into nearly £3K pa! Just because of my medical situation.
It gets more interesting. My OH is thinking of taking his pensions too, and like me has a couple of final salary ones in the background. He got a quote for transferring one of these elsewhere from his former employer, plus a quote for what they’d give him. He had a heart attack and 2 stents in 2006 but to be honest is healthier now than he was then. Putting the transfer value quote to the IFA, he managed to find Aviva would almost double the amount he’d have if he took the final salary version. Only ‘catch’ is it’s level basis (no increases) whereas the company one rises with RPI. But we worked out the difference, and it will take 22 years for him to receive the same money from the company scheme that he’ll receive from the Aviva policy - a no brainer!!
So all I’m saying is don’t think your final salary pension is as good as you’ll get - because of our health, it seems we can do a lot better by shopping around.
Quick bump - while I’m sure most people won’t be interested due to youth (!) some will and this has been stuck in employment etc with no views and didn’t appear in latest posts - another ‘enhanced feature’ as I used to call my programming bugs.
It is a minefield broomsticklady. I had a small pension but unfortunately not one of those that went down the impaired life route. None of the pensions issues has been too much of a problem for OH and myself as we have our own company and are still working even though we are now 67/72. What really bugs me is that there is no point in my OH taken his pension just now because he will only be whacked for tax on it! I think we need to ask few bods for quotes and do our own bit of googling and find out what questions we should be asking. Our IFA is suggesting OH goes down the ‘draw down’ route with his. Good luck in sorting it all out and finding the best solution.
Dawn
xx
Thanks for the information about the Impaired LIfe pensions. I will keep it in mind. I am 49 and would have liked to take early retirement at 50 but then I considered my 4 times Death in Service and changed my mind. This wpould be good security for my hubby and daughter and as I have worked for the same company 24 years , I think I will stick it a bit longer.
Thanks for thinking of us. Love Tracy x
Thanks for your info. My Line Manager and HR are supporting me in taking ill health retirement but occupational health told me a cancer diagnosis may not fit the criteria! It’s not just the cancer though because I have been fighting the disease for 12 years and have had 2 recurrences in the last 3 years, the latter requiring surgery and chemo. i also have bone mets and lymphoedema which is painful all the time despite analgesia. They don’t seem to take on board the psychological impact of diagnosis, possible prognosis and living life feeling like you are a walking time bomb! Sorry to moan!
Thanks again.
Christine x
I found the criteria for ill health from the 2 financial institutions I had final salaries with plus BT which was the old civil service scheme was bluntly - do you have less than a year to live - IE it’s not going to cost us much to enhance you for a short period!
I know this doesn’t help, but lets you know you’re not alone!!
I suffer from bad clinical depression and it’s been hell for me and I’m sure impinged upon my physical recovery being so mentally low all the time - tho interestingly mental health was one of the subjects the impaired health insurance questionairres asked about.
Nina