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Incapacity Benefit and Retirement Pension

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Peter Edward | 18:03 Sun 22nd Jan 2006 | Business & Finance
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I am in receipt of Incapacity Benefit at the higher rate. I am 57 and have a pension entitlement from my employers which I am thinking of drawing soon. Would this affect my benefit in any way apart from the obvious income tax implications.



Thanks in advance for any advice you can offer.

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This site:


http://www.disabilityalliance.org/ib.htm


suggests your IB could be reduced if your occupational pension is large enough

When did you start getting incapacity benefit? Broadly, if you have had it continuously since before 6.4.2001 no reduction will apply. Otherwise 50% of any occupational pension above �85 per week is taken. There are various more specific rules which could affect this - it is best to ask for information on your particular circumstances from the benefits people or a local CAB.

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