Ill health early retirement personal pension

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elacsaplau

Registered User
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A good friend of mine has unfortunately been diagnosed with cancer - his outlook is far from certain. He is in his mid 50s and may never work again.

From a legal (as opposed to financial advisory) perspective, can he take his personal pension now (i.e. take the lump sum and ARF/AMRF the rest)?
 
You can take pension benefits at any age if you are permanently incapable of carrying out your job or a similar job for which you are trained through infirmity.

Medical evidence will have to be submitted that this is the case.

There is no avoiding the AMRF in this circumstance either. I had a case a number of years ago of a terminally ill client who wanted to mature a pension. Even though he would never reach the age of 75, the Revenue had no scope in the legislation to waive the AMRF requirement.



Steven
www.bluewaterfp.ie
 
Thanks very much, Steven

I really appreciate the time you take to answer these type of questions for people.

Can I (cheekily) ask a follow-up please?

It is very unlikely that he will work again and his consultant will provide such a note. Just wondering what would happen if he has "retired" and his situation does improve (as we all hope) and in time he is able to do some work (say on a part-time basis)?
 
If in a DB scheme, there is a possibility that there would be NIL lump sum on retirement, but payment of full pension at age 65, from date of the early retirement. Consult the rulebook or HR dept
 
elacsaplau said:
Thanks very much, Steven

I really appreciate the time you take to answer these type of questions for people.

Can I (cheekily) ask a follow-up please?

It is very unlikely that he will work again and his consultant will provide such a note. Just wondering what would happen if he has "retired" and his situation does improve (as we all hope) and in time he is able to do some work (say on a part-time basis)?
Click to expand...

It won't be an issue. If he's signed off by a doctor and the life company agree with the medical evidence, it won't matter if he makes a recovery. It's not as if the Revenue or the life companies are looking out for it.


Steven
www.bluewaterfp.ie
 
SBarret, can you explain what you mean by AMRF?

And one more question, I thought if you got early retirement on medical grounds, you couldn't work, even part-time or you'd lose your pension?
Thanks, Thirsty
 
An explanation of AMRF is here

Are you talking about a private pension or a State disability?

You have to be signed off by a medical professional to be able to claim ill health early retirement. The cases of people being able to return back to work is few and far between. And remember, it is return back to your own job or one you trained to do. If you were a stockbroker and you had a heart attack due to the high levels of stress you were under, you may not be able to go back to being a stockbroker but you may be able to take up as role as a gardener.


Steven
www.bluewaterfp.ie
 
Private pension, not state.

So to take your example, suppose I were a surgeon and traumatic injury means I can no longer work as a surgeon, particularly given the hours/ pressures involved; I take early retirement on medical grounds.

As part of my recovery / therapy I learn how to drive a bus / coach (I'm making this up!).

Can I work part-time doing the local school run 3 mornings a week? or does that invalidate the early retirement on medical grounds?

Thank you for the link on AMRF, I didn't find it easy reading, but maybe I'll try again later!
 
Thirsty said:
Private pension, not state.

So to take your example, suppose I were a surgeon and traumatic injury means I can no longer work as a surgeon, particularly given the hours/ pressures involved; I take early retirement on medical grounds.

As part of my recovery / therapy I learn how to drive a bus / coach (I'm making this up!).

Can I work part-time doing the local school run 3 mornings a week? or does that invalidate the early retirement on medical grounds?

Thank you for the link on AMRF, I didn't find it easy reading, but maybe I'll try again later!
Click to expand...


You can take pension benefits at any age if you are permanently incapable of carrying out your job or a similar job for which you are trained through infirmity.


If the ARF article isn't easy reading, I will have to edit it so it is more readable. One of my earlier articles. :oops:
 
pension benefits at any age if you are permanently incapable...etc.,
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That's grand, I have that bit ;)

What I'm asking is are you then prevented from taking up any other type of paid employment, be that part-time or whatever? (which is not your primary occupation or even related to your primary occupation). As in my example above, surgeon retires on medical grounds and then takes up the local school run a couple of mornings a week.

Would the surgeon lose their pension payment?
 
Once the original decision to justify early retirement stands up, there is no further check on whether the individual subsequently takes up another employment after making a recovery.
 
Can I piggy-back on this question regarding private pensions? I had to retire a number of yrs ago due to a long-term condition. I rec.d a pension based on ill-health. I've just rec.d a letter asking for a 'periodic medical review' to be carried out to see if I still qualify for the pension under the rules of the scheme. The condition I have hasn't changed, but it is a LT illness and probably more manageable than it was when I initially rec.d the pension. My employers at the time were quite keen that I take the retirement on medical grounds as it suited them, and frankly it suited me as I was quite unwell. I'm now worried they may take my pension away and am wondering what my options are.
 
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