Hello and thanks for posting,

Unfortunately, we don't have any feedback or experience from other enquirers regarding taking early retirement.

There are sources of information about this on the Moneyhelper website, and also on the UK Government  website regarding this issue.

I hope this is helpful,

Best wishes,

Vanda

Hi Meaney,

I guess that depends on what pension scheme you’re enrolled with. It is worth checking the full details before you commit to anything.

I was diagnosed with Stage 4 with a limited life expectancy at age 55. At the time I was working for the NHS and I had just reached the minimum retirement age for their scheme.
I was given three options. All had a cash payment plus -

1) take normal retirement - number of qualifying years divided by 80, multiplied by my annual salary;
2) apply for medical severance - they’d supplement my qualifying years served up to age 60 divided by 80, multiplied by my final salary;
3) terminal illness severance - as 2) but commuted to a single lump sum (worth 3 years pension) with no further payments.

I was tempted by the terminal illness severance payment because at the time six months had passed since my diagnosis with a prognosis of 3 to 18 months, maybe 2 years if the chemo was unusually successful. 

I’m not sure why but I went for Option 2. I’m so glad I did as, completely unexpectedly, I went into full remission following chemo. 

If you have a terminal prognosis (less than a year) you should qualify for a fast tracked PIP application through MacMillan. It isn’t a lot of money (£108 plus £75 mobility) but it isn’t means tested or taxed and would be backdated to the date of your diagnosis. 

Good luck
Dave