What is medical retirement?
Medical retirement, also known as ill health retirement, lets you access your pension before the Normal Minimum Pension Age (NMPA) of 55 (rising to 57 in 2028).
It’s designed for people who are no longer able to work because of a long-term illness, disability or mental health condition.
You’ll need to meet specific criteria, and the process can vary depending on your pension provider. But for many, it can offer vital financial support at a difficult time.
Just be aware that your State Pension can’t be taken early, even if you’re seriously ill. It’s only available from your official State Pension age of 66 (rising to 67 from 2028).
What conditions qualify for medical retirement?
There’s no strict list of qualifying conditions and ill health criteria will differ from provider to provider. Some will typically look for medical proof showing that your health is unlikely to improve enough for you to return to work. Either in your current role or in a similar one. However, others may have stricter rules so it’s worth checking with your specific provider.
You may qualify if you’re living with:
- a serious physical illness, such as cancer or heart disease;
- a progressive or degenerative condition;
- a long-term mental health challenge, such as PTSD and clinical depression; or
- a disability that limits your ability to perform work tasks safely or consistently.
Before granting approval, your provider might also check whether:
- you’ve explored all suitable treatments and therapies; and
- your employer explored reasonable adjustments, but they weren’t enough to help you stay in work.
Reasonable adjustments could include changes to your hours or responsibilities, specialist equipment or support with transport.
If you’re not sure what’s possible, services like Access to Work can provide a workplace assessment and guidance.
How to get medical retirement
If you’re considering medical retirement, your pension provider will usually ask for:
- a completed application form;
- medical proof from your GP or specialist;
- proof of unemployment; and/or
- a statement from your employer confirming your health is the reason for leaving work.
Some providers may need to see an independent medical assessment before making a final decision.
If your application is rejected, you should be given a reason and the opportunity to appeal. You may also be able to provide new proof or provide a second opinion.
If your pension is linked to your current employer (i.e. a workplace pension), It’s a good idea to keep written records of any conversations you have with them about medical retirement. Consider having a colleague or union representative attend meetings with you for support.
It’s important to know that your employer can’t pressure you to retire on medical grounds. The decision should always be yours, and reasonable adjustments should be explored first.
What happens if your application is successful?
Once approved, you can begin taking your pension straight away, even if you’re under the NMPA. How you access your money depends on the type of pension you have. It’s worth noting that taking a medical retirement and accessing your pension early could impact any means-tested benefits you receive. So this is worth thinking about before doing so and seeking further information from GOV.UK.
Medical retirement and defined contribution pensions
With a defined contribution (DC) pension, you’ll usually have a few options for taking your money:
- taking up to 25% as a tax-free lump sum;
taking income as and when needed through flexible drawdown; or
purchasing an annuity in exchange for a guaranteed income for life.
Bear in mind that accessing your pension early may mean your money needs to last longer, especially if you originally planned to retire later. It’s key to remember that early access isn’t intended for short-term spending, it’s usually to support you if you can no longer receive a regular income from employment.
Any income you take beyond the tax-free amount may be subject to Income Tax. The rate will depend on how much you withdraw and your overall tax situation.
Medical retirement and defined benefit pensions
Defined benefit (DB) pensions, such as final salary or career average schemes, pay out a regular income for life. If you retire early due to ill health, your scheme may:
- pay out the full amount as if you’d reached the NMPA;
- reduce your income depending on how early you retire; or
- offer further benefits if your condition is terminal.
Each scheme has its own rules, so it’s best to speak to your scheme administrator for the most up-to-date guidance.
Could you get an enhanced annuity?
If you use your pension to buy an annuity, you may qualify for a higher rate (which could offer you higher regular payments) if you’re retiring due to ill health. Enhanced annuities provide a higher income based on factors such as your medical history and life expectancy.
Your provider or a qualified Independent Financial Adviser (IFA) can tell you whether you qualify for one.
What if you’re terminally ill?
If you’re under 75 and your life expectancy is less than a year, you may be able to take your whole pension pot as a tax-free lump sum. This is capped at the Lump Sum and Death Benefit Allowance (LSDBA), which is currently £1,073,100 (2025/26) and can only be paid from uncrystallised funds. Uncrystallised funds are pension savings that haven’t yet been accessed.
If you’re over 75, or if the payment exceeds your remaining allowance, the lump sum is usually taxed at your Income Tax rate. In some cases, a portion of your pot may need to be kept back to provide for a dependant.
Your pension provider can confirm what’s available based on your personal situation and you’ll need to provide evidence from a medical professional before any payment can be made.
Can you return to work after medical retirement?
For many providers, permanent medical retirement is a condition of early pension access so there’s a chance you may only qualify on this basis. However, some schemes may allow you to return to work in a different or less demanding role, particularly if your health improves. It’s worth noting that this might affect your pension income or benefits.
Some people who leave work due to ill health later find roles that better suit their abilities or lifestyle, such as desk-based jobs or part-time work.
Other options to consider
Medical retirement isn’t the only route available. Before applying, it’s worth looking at other sources of financial support.
- Workplace adjustments - changes to your job setup might help you stay employed for longer.
- Voluntary redundancy - your employer may offer this as an alternative, though it may not offer long-term financial security.
- Insurance - you may have income protection or critical illness cover that provides a lump sum or regular payments.
- Government support - a benefits calculator can help you check eligibility for Universal Credit, Personal Independence Payment (PIP) or other entitlements.
- Self-employment - if you’re self-employed, you won’t qualify for Statutory Sick Pay but you may be able to access your pension or claim other forms of support.
Support for mental health and disability
You can apply for medical retirement due to mental health conditions or disability, and the process is the same as for physical illnesses. The key test is whether your condition makes it unlikely you’ll be able to work again.
Leaving work can be emotionally difficult, especially if it means losing structure or social connection. Charities like Mind offer support to help you navigate the change.
Need more guidance?
Medical retirement can be a lot to take in, especially if you’re already dealing with a challenging illness or disability. Ensure your pension providers are given accurate information at the time of claim, and kept informed if anything changes. This is particularly important as there are significant tax implications on both the individual and the pension provider should pension be paid before NMPA outside of HMRC’s minimum conditions.
If you’re unsure where to begin, speak to your pension provider, check this guide from MoneyHelper or, speak to a qualified IFA.
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.
