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.
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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.
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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.
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Our solution
- Helps you to manage the extra cost caused by a member 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
Download our PDF file: Ill health early retirement benefit brochure PDF size: 400KB for a summary of how this policy could help you.
Download our PDF file: Ill health early retirement benefit technical guide PDF size: 773KB for details on what we can and can’t cover and how we assess claims for payment.