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One in eight people in the UK are forced to stop work before state pension age because of ill-health or disability, new research reveals.

On the back of a recent report by The Trade Union Congress [TUC] which shows that nearly half a million (436,000) workers in the UK who are within five years of state pension age have to leave the workplace as a result of ill-health or disability, 360 Protection Choices has urged workers to invest in Income Protection Insurance to protect themselves from the negative impact of early retirement due to unforeseen circumstances, such as illness or injury.

Only 7% of home owners in the United Kingdom have Income Protection policies.  In Northern Ireland, 24% of the population – the highest rate of people in the UK – are quitting work because of ill-health in the five years before they are eligible to claim a state pension.

On average in a month, UK households spend an average of £1,503

Income Protection Insurance pays out on average £1,060 per month to cover claimants’ mortgage/household payments and any other monthly outgoings.  This sum is tax free and is paid monthly until the claim term ends or the recipient enters retirement age. 

There is a total amount of £20m paid out across the UK through Income Protection policies.

The average age of claimants at the start of incapacity to work is 48 for men and 43 for women, with the top causes of ill-health/injury claims including mental illness conditions (depression/nervous breakdown) at 35% and Musculoskeletal conditions (back injuries/arthritis) at 16%

Laura Chandler, managing director at Michael Chandler Insurance commented:

“This report really highlights the huge importance for employees of all ages to invest in Income Protection Insurance to protect themselves, their families and their homes in the instance of unexpected early retirement due to illness or injury.  An early retirement of this nature would inevitably result in a sudden drop or total loss of earnings and, without the appropriate level of protection in place, the consequences could be extremely serious for the employee and their family - with the potential for them to lose their home because they simply cannot afford to keep up their mortgage repayments anymore.

“Income protection will provide an income to help replace the loss of earnings due to early retirement and, in some cases will even offer a reduced benefit if the claimant is able to go back to work in a reduced capacity at any stage in the future. Furthermore, if the claimant is fit enough and does return to work and the illness/injury should re-occur at any stage down the line, their Income Protection policy will recommence with the same monthly payout and at the same fixed cost that was originally agreed.

At Michael Chandler Insurance we would love to hear from any employee who would like to consider protecting their family, their home and themselves by investing in Income Protection Insurance. Call us today on 028 90 994 360 or email to find out more or book an appointment.

Source: Sept 2016 

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