What happens to your pension when in hospital?

If you're retired and go into hospital, you'll continue to receive your workplace pension and State Pension income as normal. If you receive it, Pension Credit payments could be affected depending on the length of your hospital stay.

Does your pension stop if you’re in hospital?

A pension is designed to support you in later life, allowing you a degree of financial stability when you’re no longer earning income from work.

Therefore, you’ll continue to receive income from your pension throughout your retirement regardless of your state of health.

State Pension when in hospital

Like a workplace pension, the State Pension isn’t affected by your state of health and should continue to pay out if you’re in hospital.

However, the government does ask hospital patients receiving a State Pension to get in touch with the Pension Service helpline to clarify their benefit entitlements.

Pension Credit

Pension Credit is a two-part benefit that supports those of State Pension age whose income is below a certain threshold. It includes the Guarantee Credit and Savings Credit benefit schemes.

If you receive either of these benefits and your hospital stay is longer than 28 days, the amount you receive might be affected.

This is because the amount of Pension Credit you receive is calculated to include income from other benefits - some of which may stop or be reduced if you’re in hospital for more than 28 days.

In cases of terminal illness

While both your workplace and state pension will continue to pay out while you’re in hospital, you may be concerned about what will happen to your pension if you’re not expecting to recover.

In this scenario, you or a family member have the option of speaking with an on-site hospital social worker who can help assess your financial situation and provide advice. For more information, see What happens to my pension when I die?

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

Last edited: 12-08-2021

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