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Ill Health Early Retirement Benefit.

Protect your business from unexpected ill health early retirement payments.

Pension schemes can face large and unexpected costs when a member retires early because of ill health.

Our Ill Health Early Retirement Benefit is an insurance policy that is designed to help you de-risk, budget and plan for this unpredictable liability.

The issue

  • Permanent ill health could affect any of your employees at any time
  • Many schemes promise to pay a pension to members retiring early due to ill health
  • The unexpected liability could place a financial strain on you or your pension scheme
  • Could be as much as 10x an employee's salary and is ultimately payable by you

The impact on your scheme

  • Unpredictable. Early retirement costs will vary depending on the person's age, salary and length of service
  • Expensive. With a defined pension scheme:
    • The pension will begin earlier than expected and so could be paid for longer
    • There is usually no reduction in pension received for early payment
    • The employee may be entitled to the future years of pensionable service
    • A sudden additional liability could severely impact the stability of a scheme's funding and The Pensions Regulator could insist that you make an immediate extra contribution

With a defined contribution pension scheme, the whole cost of enhancing the member's pension will fall on you.

Our solution

  • Helps you to manage the extra cost caused by an employee retiring early due to ill health
  • Offers the flexibility to choose the level of cover you need
  • Includes purpose-built tools to make it easier to set up a policy
  • Is suitable for pension schemes with at least 100 active members
  • Does not limit the number of claims you can make in a year
  • Has a clear claims process

Find out more

Contact us

0845 072 0751

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