Do I Qualify for an Ill-Health Pension?

I’m not in very good health and will struggle to continue working. A friend mentioned there are ill-health pensions, how do I qualify for this?

Question asked by Chris Stevenson
Are You Pension Happy?
Call us on 02084327334
I know how much my pension is worth
I know how much my pension costs
I have clear financial goals for my retirement

Answered by Neil Adams

Some pension schemes offer an ill-health pension. This means if you are unable to work because of poor health, you can take your pension benefits early, in some cases before you reach the age of 55. This is commonly known as being ‘pensioned off’.

If you are in ill-health, check with your pension scheme administrators to see if you qualify. Each scheme will typically have its own definitions of what ill-health means and when you will and won’t be considered for an ill-health pension.

A serious ill-health pension may be payable if you have a reduced life expectancy – usually less than one year. This means you may be able to take your entire pension pot as a lump sum and special tax treatment will apply so that you aren’t hit with a hefty tax bill.

If you’re in a defined contribution pension scheme, one of the options open to you is to buy an enhanced annuity with your pension pot. This will give you an income over and above a standard annuity to take into account your projected shorter life expectancy.

If you are in ill-health a professional financial adviser may assist in providing you with the various options available to you.

ill-health pension
'pensioned off'
retirement planning
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

I want to make sure that I get the most out of my pension, how can I compare different plans to help...
Could you explain to me what the annual allowance is and what it means for my pension? Also, I’ve...
I have received some pension documents saying that I have a protected rights pension, what is this and...
My old pension scheme has informed me that I need to seek financial advice before I can make a transfer....
Need Help? Live chat now and get an instant answer from our Experts...


Our Latest Reviews
Matthew Draper

Excellent service at convenient times of the day specified by me. All product options were clearly outlined and I am very pleased.

Paul Devine

First class service. Helped me through the process from start to finish. Egle and Francis were very professional and talked me though all my options. Once the policies were set up, the after care after was also first class. Highly recommend. 5 stars all day long.

Josip Marjanovich

Victoria was very helpful about selection of suitable insurance. She always answered all questions in a timely manner.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
4.93 / 5 Average
652 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Overall Rating
Tailored to my need and the staff gave very good service