Pension release - illness

[Ktker]

Hi, I'm 52 with a private pension. I was diagnosed with cancer and going through treatment and will be for the next 10 years - if I live that long.  I asked Legal and General if I could take my pension early due to cancer but they have come back saying that pension legislation states that I cannot take it until my 55th birthday. I have looked at various sources and as I understand it cancer comes under "ill health" - any ideas where I go to now?

[ericsbrother]

some schemes do have a terminal illness or critical illness release policy so you will need to read what your scheme says and then if it isnt clear what is siad or you believe that such a term in the policy will alow the early payemtn you then take the matter to the Ombudsman if they cant be persuaded to reconsider.

i would ask the Pensions advisory service for their help  if there is no clarity in the wording of the scheme as they will have come across similar cases. However, a life expectancy of 10 years isnt generally serious enough to trigger such a term so the you have to see if there is a "permanent ill health" clause. That generally means you have to be unfit to do ANY work rather than just your current job type but again the PAAS can advise on the interpretation of such wording

What I would also do is look at the policy and see what it says about benefits payable upon death and also about actuarial calculations for peopel with life shortening illnesses of lifestyles. Ultimately you might have to move your money elsewhere ( allowed) to get the best deal

[Ktker]

Thank you for the reply. I went back to L&G and asked them about their health policies and got a reply back apologising for not recognising my health condition and that they will get back to me.

so looks like claims did not read my letter properly.

[honeybee13]

That sounds encouraging, Ktker, except that you would hope L&G would pay a bit more attention to the details.

 

Please keep us posted and fingers crossed.

 

HB

[ericsbrother]

[lease let us know the outcome as it will help us to help others

Edited May 17, 2019 by ericsbrother