Some people choose to give up work completely when they are diagnosed with cancer. This allows them to focus on the cancer and its treatment and to reassess their lives. If work has been the major focus of your life it can be difficult to adjust to not working. It may help to talk to someone about the emotions you may have, such as a counsellor at the Cancer Counselling Trust.

You will need to think carefully about the effect on your finances of giving up work. It is important to get advice from an independent financial adviser. You may not be able to claim benefits for 13–26 weeks. You will need to consider the money you will receive from a state, occupational or private pension and from any other sources such as savings, shares or benefits. If you give up work you give up rights which are associated with the employment. This may include:

• sick pay and statutory sick pay
• pension rights
• death-in-service benefits
• occupation-linked private medical insurance
• other occupational benefits.

Early retirement

If you want to take early retirement on health grounds or for personal reasons, it is essential to take advice from your pension administrator. You may be able to take early payment of your pension on the grounds of ill health, but this will depend on the rules of your own particular pension scheme. You may have several options to consider.

Taking an occupational pension for health reasons can mean that you receive a higher amount of pension. However, if you choose to retire early but are medically fit to work, the level of your pension may be lowered. Your scheme may not allow you to retire early if you are fit to work. The provisions vary between schemes. Consider your own circumstances carefully, taking your health into consideration, before deciding on a final settlement.

You can get advice from an independent financial adviser about the various options open to you that may give you a higher income from your pension. You may need to decide between a large lump sum payment + small monthly income, or a small lump sum payment + large monthly income.

If you are claiming Incapacity Benefit, this may be reduced if you receive payments of more than a certain amount per week from an occupational pension, personal pension, public service pension or permanent health insurance. There are exceptions, when deductions from Incapacity Benefit will not be made, which include people who are receiving the higher rate of the care component of Disability Living Allowance.