If you're unable to work due to an illness or accident, you can ask to receive your pension early. Some schemes allow pensions to be paid early because of ill health but each scheme might define what counts as ‘ill health’ differently and have different conditions. The requirements will be set out in your scheme’s rules.
What’s in this guide
- Making a decision
- Appealing a decision
- I lost my job because I’m ill but my scheme says I don’t qualify for an ill-health pension
- My GP supports my application. Why can they turn me down?
- The scheme’s medical adviser didn’t see me. That can’t be right?
- I’ve been diagnosed with a terminal illness. Are there any other options available to me?
Making a decision
To receive your pension early, you’ll need to provide your pension scheme or employer with details of your ill health/condition and why you’re no longer able to work. Your scheme provider will then consider your case and make a decision.
The decision-maker should:
- correctly use the scheme’s rules ask the right questions and apply the law correctly
- review all the evidence and consider all relevant information
- make a reasonable and fair decision
- provide a report detailing the reasons for their decision and the next steps in case you disagree with the decision.
Need more information on pensions?
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Appealing a decision
If your request for ill health early retirement is refused, it’s possible to challenge a decision if one or more of the above was not followed.
If that’s the case, the decision-maker should reconsider. This doesn’t necessarily mean they will come to a different decision.
I lost my job because I’m ill but my scheme says I don’t qualify for an ill-health pension
Although you lost your job because of your health, your eligibility for an ill health pension depends on the criteria in your scheme’s rules.
In some schemes even if you can’t do the job that you are/were doing due to ill health, if you’re still capable of doing ‘a job’ you might not fit their criteria.
My GP supports my application. Why can they turn me down?
It’s common for there to be differences in medical opinions.
While your GP’s opinion is relevant, the decision-maker can also get their own medical opinion and choose the one they think is most appropriate.
What’s important is that they make their decisions properly. For example, they should ask the right questions if they need clarification from medical experts.
The scheme’s medical adviser didn’t see me. That can’t be right?
There’s no requirement for a medical adviser to meet you. That would be down to their professional judgement.
What is important is that the decision-maker makes their decision in line with the principles above.
I’ve been diagnosed with a terminal illness. Are there any other options available to me?
If you’re under the age of 75 and have been diagnosed with a life-threatening condition where you've been given less than 12 months to live, you might be able to access your pension tax-free.
Speak to your pension provider to see if they offer this option.
