Finding out you have a serious illness such as cancer or heart disease can turn your world upside down. When you are coping with a life-threatening disease the last thing on your mind will be your pension and finances. Here’re a few things to consider in those circumstances.
What happens to your pension when in hospital?
If you are retired and hospitalised, your state pension and workplace pension will continue coming to you as usual. However, your pension credit payments might be affected if you are hospitalised for a long time.
Does your pension stop if you remain in hospital?
Pensions were invented so that people can get some monetary support in their later years. Regardless of your health condition, your pension won’t stop coming.
State Pension impact when in hospital
Your state pension won’t be affected either, and you will continue to receive it even if you are hospitalised.
Pension Credit
Pension credit is designed to help those whose pensions are below a certain threshold. Pension credit is two-part support consisting of Savings Credit and Guarantee Credit advantage schemes.
If you receive this type of support and are hospitalised for more than 28 days, the granted amount might be affected. That’s because the value of your pension credit is determined by income from some other benefits. Some benefits are at risk of being minimised or stop if you spend more than 28 days at a hospital.
What happens in case of a terminal illness?
Both your state and personal pension won’t stop coming regardless of your terminal situation.
In some circumstances you may be eligible to withdraw the full value of your personal pension tax-free upon diagnosis of a terminal illness with less than 1 year to live.
