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Pensions

MITCH1949MITCH1949 Member Posts: 13 Connected
In June 2020 I was in hospital been in 8 weeks, they told me I had cancer in stomach and were going to operate, then told me I'd had a heart attack and could not operate sent me home with terminal cancer. I have a private pension and told provider about terminal cancer and asked could I  take my pension as a lump sum I'd taken some as a lump sum when I retired in 2012 and have been getting monthly payments. They said no its not there dissision ITS HMRC  my pension is worth almost £90000, so I'm not allowed to "cash it in". It makes no difference having terminal cancer, I spoke to macmillans finance team and they said the same. I'm divorced so ex can't benefit HMRC   can pay out under £30000. Give me 30000 for my family HRMC  be happy with keeping £60000.my MP says she will look into it  agrees it's not right but it's going to happen HRMC will take it after my death. 

Replies

  • woodbinewoodbine Community Co-Production Group Posts: 4,413 Disability Gamechanger
    hi @MITCH1949 once you take a lump sum (tax free) and taken an annuity (pension)with the rest then that's it as the rules stand atm (there maybe changes coming down the line), HMRC won't be keeping anything the pension provider will get it all (that's how it works), if you are over 65 you can apply for Attendance Allowance, under 65 then apply for PIP.
    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • MITCH1949MITCH1949 Member Posts: 13 Connected
    I get pip but it's my money, money I worked for, provider or taxman still stealing my money..... 
  • atlas47atlas47 Member Posts: 160 Pioneering
    edited October 2020
    Hi @MITCH1949

    You need detailed expert advice on this matter.

    Can I suggest you contact the Pensions Advisory Service on tel: 0800 011 3797 ( Mon to Fri - 9am till 5pm).

    Make sure you have all documents relating to your pension, to hand when you make the call.

    NB
    All schemes should have a “Terminal Illness” clause, defined within the scheme.

    Hope this helps.

    Keep us updated.

    Best wishes
  • woodbinewoodbine Community Co-Production Group Posts: 4,413 Disability Gamechanger
    edited October 2020
    @MITCH1949 when you retired in 2012 you only had one option with your defined contribution pension and that was 25% of its value tax free with an annuity paying you £x until you died, now because the value of annuities took a hit in the financial crash of 2008 the govt decided that from 2015 you could take all the pensions value from the age of 55  25% tax free 75% taxed at your notional rate of tax, however the rules in 2012 are what apply. The balance of your pension value isn't your money it has been used in full to purchase an annuity that might have paid out for anything upto 30 years or more.
    The unfortunate truth is if you had developed a terminal illness pre 2012 other rules might have applied.
    I wish you well but hope you realise that you will be fighting a losing battle if you still think it's your money.
    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • woodbinewoodbine Community Co-Production Group Posts: 4,413 Disability Gamechanger
    atlas47 said:
    Hi @MITCH1949

    You need detailed expert advice on this matter.

    Can I suggest you contact the Pensions Advisory Service on tel: 0800 011 3797 ( Mon to Fri - 9am till 5pm).

    Make sure you have all documents relating to your pension, to hand when you make the call.

    NB
    All schemes should have a “Terminal Illness” clause, defined within the scheme.

    Hope this helps.

    Keep us updated.

    Best wishes
    this would only apply if someone was still working in this case the pensioner had been retired for 8 years and receiving a pension (annuity) from the scheme having already taken the 25% tax free lump sum.
    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • atlas47atlas47 Member Posts: 160 Pioneering
    Hi @woodbine

    I only post sound advice, that I know is factual and true.

    It matters not what status of retirement the OP is, the Pension Advisory Service is there to help, in all matters relating to pensions.

    I am sure with your capabilities, you would seek more detailed insights into such matters.

    I have no doubt that you will avail yourself of the freephone helpline, that I suggested to the OP.

    Please note what I stated about a “Terminal Illness” clause for scheme membership.

    Stay safe and be kind.
  • woodbinewoodbine Community Co-Production Group Posts: 4,413 Disability Gamechanger
    @atlas47 I was only pointing out that the terminal illness situation re:company pensions would only be avaliable to a scheme member who hadn't yet reached retirement in this case the person retired 8 years ago and having taken 25% of the pension pot tax free had been receiving an annuity (pension) since 2012, therefore they would not be able to access any money in their pension "fund" as it had already been used to purchase said annuity.
    I have no need whatsoever to avail myself of advice from anybody on this as I have already double checked my advice before giving it.
    What you stated about a "terminal illness clause" is not how it is.
    Stay safe, and I always try my utmost to be kind even under the most trying of circumstances.
    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • chiariedschiarieds Community Co-Production Group Posts: 9,087 Disability Gamechanger
    Having fairly recently had difficulty over a small private pension, which my now ex-husband & I contributed to equally (which he did not dispute) for our retirement, I thought I had claim to half of this when we separated. However, it was just in his name. 'We' took out an annuity in 2012, however I discovered that once it is in 'draw down,' i.e. when monies are received monthly, then legally nothing can be changed.
    The OP took out an annuity, & presumably agreed to the terms & conditions beforehand. Unfortunately I can't see how now they can 'access' monies that are in such an annuity due to their ill health as @woodbine says.
    The OP can of course discuss matters with the Pension Advisory Service nonetheless.
  • andoando Member Posts: 11 Listener
    Well people I would be far better off without my pension because I get £500 a month work pension my esa is less and I pay full housing rent and council tax all because I went to work I now have MND which I got at 50yrs old my neighbour gets all benefits inc high level pip and he pays next to nothing sorry for a rant but I live on my own and can’t afford care”s
  • Tori_ScopeTori_Scope Posts: 4,959

    Scope community team

    It's good to see you on the community @ando :) I've made your comment here into its own post so that people will be able to find it more easily. 

    You can find your new post here.
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