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24th February 2021 at 6:22 pm #15316SimoneParticipant
Has anyone got experience of this? I was advised to look into making enquiries about taking my workplace pension early. I worked for the local Council for about 15 years – 10 years, then a gap, then 5 years. Always paid into the pension fund.
I haven’t been in paid work since I “retired” in 2005 – as a result of a car accident I was experiencing much more pain and a big reduction in my mobility and ability to use the loo independently. I struggle to sit for long periods too.
On advice from my financial adviser, I applied to take my pension early about a year ago. This was a fairly lengthy and drawn out process (terrible communications with the pension provider!) and I had to do a lot of chasing up. I had two x telephone assessments from an occupational health doctor who asked me questions about the work I did, what I do now and what would stop me from doing my previous job (a secretary).
I was assessed as being “unfit to do my previous work due to ill-health” and – lovely surprise. I thought I would just start to get my pension paid to me monthly from now on. But as well as this, I have received a backdated payment in respect of past years that I have been unable to work – so 15 years worth of back-dated annual pension!
This was a large amount – over £60k – (mainly because it was for so many years).
But the bad news is that tax was deducted from it before it was paid out to me – so I received £42k.
If anyone is in a similar position to me, it may be worth seeing whether you’d be entitled to receive your pension payments early? After all, money paid into a workplace pension is of no benefit to you once you’ve died (but can be drawn down by any financial dependents).
I’m currently making enquiries as to whether I can reclaim any of the tax back that I had to pay – will provide an up-date if and when I hear about this.
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