Pensions and cancer

You may find it useful to think about your pension options when you have cancer. There are two main types of pensions:

• State Pension
• Private pension scheme.

The State Pension is a regular payment you can get from the government when you reach a certain age.

The age you can get the State Pension depends on when you were born. It is slowly increasing in stages.

You can check your state pension age online, call the Future Pension Centre on 0800 731 0175, or use textphone 0800 731 0176.

If you retire early because of ill health, you will still have to wait until you reach State Pension age to claim your State Pension. Read more information at gov.uk

Private pensions, also called personal pensions, can be arranged by either:

• your employer – these are called workplace pensions
• you.

There are two types of private pension:

• Defined contribution scheme — any pension you arrange yourself is a defined contribution scheme. This is where you build up an amount of money. If your employer has arranged the pension, they pay money in alongside your contributions.
• Defined benefit scheme — workplace pensions can be either a defined contribution scheme or defined benefit scheme. A defined benefit scheme is where your employer promises to pay you an agreed amount when you retire. The amount you get is based on how long you have worked there. It is also based on your final salary, or your average salary from across your time at the workplace.

If you have a low income, you may be able to get extra support as well as your State Pension. This is called Pension Credit.

Pension Credit is a means-tested benefit. Means-tested means you can get extra support if your income or savings, or both, are below a certain level. The level depends on your situation. You may get more support if you are a carer or have a disability.

We have more information about Pension Credit and other benefits you may be able to get.

The Pensions Advisory Service and Citizens Advice give free guidance about pensions. If you are aged 50 or over, they can also refer you to a free government scheme called Pension Wise. This scheme can give you extra guidance and support.

Our financial guidance team can give you free, independent guidance on all aspects of your personal finances. This includes pensions, mortgages, insurance, retirement, borrowing and savings.

Our financial guides all have experience of the financial services industry and their role is to help people affected by cancer understand their options after a cancer diagnosis.

You can call the Macmillan Support Line on 0808 808 00 00 and speak to our financial guides about any worries you may have.

Macmillan’s financial guides, The Pensions Advisory Service, Citizens Advice and Pension Wise are impartial. They do not recommend any products or companies, or tell you how to invest your money. They can discuss all your options so you can make an informed decision.

An independent, professional financial adviser is a specialist who is legally allowed to give you recommendations about buying financial products.

You could find a financial adviser by asking family or friends for a recommendation, or by visiting the following websites:

• Wayfinder
• Personal Finance Society
• Money Advice Service.

An independent financial adviser charges a fee for their service.

Always make sure the financial adviser is authorised. You can check they are on the Financial Services Register. Some financial advisers are linked to pension providers. Try to choose one who is independent.