Brief

UK government to ease pension access for terminally ill patients

The reforms will shift the definition from a strict one‑year medical evidence rule to a more flexible 12‑month expectation, the government said.

By Felo News Desk · Published Thu, 15 Oct 2026 12:12:28 GMT

The UK government announced plans to make it easier for people with a terminal illness to access their private pension savings, according to Standard and the Independent.

What happened

The proposals change the definition of "terminal illness" used for pension tax purposes. Under the new test, death must be reasonably expected within 12 months, rather than requiring medical evidence that the person is expected to live less than one year. The reforms also aim to reduce differences between pension rules and the wider benefits system.

What the reports add

Both Standard and the Independent report that the government highlighted the current disparity, noting that it can be easier for someone with a terminal illness to claim state benefits than to draw on their own pension savings. The outlets also quoted the government's statement that the success of automatic enrolment means nearly 90% of eligible employees are saving into a workplace pension.

What was said

Pensions minister Torsten Bell said, "When someone is facing a terminal illness, they shouldn’t have to go through red tape to get at their own pension savings. That’s why we’re making the rules clearer and more consistent, so that people can access their own money when they need it the most," as reported by both outlets.

Dr Sam Royston, executive director of research and policy at Marie Curie, was quoted saying the changes would help ease financial pressures for people dealing with a terminal illness.

How it came about

The proposal follows earlier pension‑related reforms discussed by Felo News, including the September 29 article on the Labour party’s triple‑lock overhaul (link). That piece noted broader concerns about pension sustainability and the need for reforms that better align pension benefits with other welfare provisions.

Key facts

The definition of terminal illness for pension tax purposes will shift to a test that death can reasonably be expected within 12 months. (standard.co.uk)
The reform aims to reduce differences between pension rules and the wider benefits system. (standard.co.uk)
Pensions minister Torsten Bell said the rules are being clarified to help terminally ill people access their money. (standard.co.uk)
Dr Sam Royston of Marie Curie said the changes will ease financial pressure for terminally ill patients. (independent.co.uk)
The government said nearly 90% of eligible employees are saving into a workplace pension thanks to automatic enrolment. (standard.co.uk)