Example of ill health retirement

Example 1

Lisa is about to be retired on ill health. She is aged 45, so has 20 years left to her normal pension age (age 65).

There is NO prospect for her obtaining gainful employment before age 65.
She is therefore being retired under Tier 1 conditions.

Her benefits will be based on any membership prior to 1 April 2014 plus the value in her pension account with an enhancement to replace the pension she would have built up by age 65.

Example 2

Donna is about to be retired on ill health. She is aged 45, so has 20 years left to age 65 (her normal pension age).

There is NO prospect for her of gainful employment in the short term, but there IS a prospect of gainful employment before age 65.

She is therefore being retired under Tier 2 conditions.

In this case her enhancement is 25% of the membership she would have built up by age 65.

Current membership: 20 years

Membership she would have built up to age 65 had she continued working x 25%: 5 years

Website terms of use | Privacy policy and cookies | Acceptable use policy © Hymans Robertson LLP - All rights reserved
Telerau defnyddio'r wefan | Polisi preifatrwydd a chwcis | Polisi defnydd derbyniol © Hymans Robertson LLP - All rights reserved