Ill-health benefits

Ill-health early retirement

Ill-health may prevent a person from working until their normal retirement date. The trust deed and rules of occupational pension schemes usually contain provisions allowing scheme members to claim their pension benefits early in such circumstances regardless of the member's age, although this is usually subject to the production of medical evidence.

In defined benefit schemes, an early retirement pension granted on grounds of ill-health may be calculated on a basis that is more favourable than for members who retire early on other grounds. For example, while it is common for an early retirement pension to be reduced on account of the fact that the pension is to be paid early and therefore for longer, such a reduction will often not be applied where the early