If you have substantial savings and a reasonable pension income, you may still be able to get extra financial help if you need someone to help look after you.
Attendance allowance is worth between £72.65 or £108.55 a week and can help with extra costs if you have a disability or health condition, including mental health conditions.
The benefit is paid out to those over state pension age and has two different rates – you will get the lower rate if you need frequent help or constant supervision during the day, or at night.
The higher rate is paid out if you need help or supervision during the day and night or if your doctor has said you are nearing the end of your life.
If your circumstances change, you will need to call the attendance allowance helpline on 0800 731 0122.
Claiming the allowance means you could also get other help with your day to day living costs, including Pension Credit, Housing Benefit or Council Tax Reduction.
If you get constant attendance allowance at the same time, your attendance allowance will be reduced by the amount of the benefit you alaredy get
Constant attendance allowance is paid out to those claiming the industrial injuries disablement benefit (IIDB) or a War Disablement Pension and need daily care and attention because of a disability.
If you are coming up to state pension age or younger and in ill health and no longer able to work, you may also be able to get some or all of your pension early.
How much you can withdraw and how that money is taxed will depend what type of pension you have and how unwell you are.
The state pension cannot be accessed due to ill health but personal and occupational pensions can offer savers a little more flexibility.
Private and workplace pensions can only be accessed once you turn 55 – this is set to increase to 57 by 2028.
In the more extreme case of serious ill health, defined by a life expectancy of less than a year, some savers may be eligible to receive the entire value of their pension benefit as a tax-free serious ill health lump sum, regardless of their age at the time.
Defined benefit pensions, the gold-plated schemes run by both public sector and private employers, allow people to take early retirement if they can no longer work because of ill health.
This might be a result of an accident or a long-term, but not necessarily a terminal or life-limiting, health condition.
If you are diagnosed with a terminal or life-limiting illness you may be eligible to take a serious ill health lump sum, or Sihls, from your pension.
The rules apply across DB or DC schemes. To qualify you will need to have less than 12 months to live; as this type of lump sum is effectively an early lump sum death benefit payment.
You can withdraw up to £1,073,100, the old Lifetime Allowance, without having to pay tax.
