DWP to change terminal illness definition for pension tax purposes

Move will bring benefit and pension tax rules at end of life into closer alignment

Jonathan Stapleton
clock • 2 min read
Pensions minister Torsten Bell Photo: © House of Commons/Roger Harris (CC BY 3.0)
Image:

Pensions minister Torsten Bell Photo: © House of Commons/Roger Harris (CC BY 3.0)

The government will change the definition of terminal illness used for pension tax purposes in a bid to make it easier for people at the end of their life to access their pension savings.

The Department for Work and Pensions (DWP) said the change will see a shift from a requirement for medical evidence that an individual is expected to live for less than one year, to the slightly mo...

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