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Going through cancer can have a significant impact on your finances, whether you’re employed, unemployed or retired. You may have to take time off work or reduce your hours, stop working altogether or consider retirement all of which can lead to loss of earnings. If you are the main earner this can also have an effect on your dependents.
While going through treatment you may also have increased living costs such as increased heating bills and travel expenses going to and from hospital appointments.
Managing your finances
It may be advisable to firstly understand what your income and spending are on a monthly basis divided into essential spending like mortgage repayments, car loans, utility bills, childcare costs, insurance and pension contributions and non-essential spending like eating out, holidays etc.
Doing this can help you to budget and manage your finances better. Staying in control of your finances can reduce money worries and give you peace of mind for the future.
You may wish to speak to a financial advisor to help you with future planning or get advice on pensions. Alternatively, free help is available from different organisations to support you with budgeting, managing your money and understanding what benefits or other financial support you may be entitled to when you have cancer.
Getting support from your work
If you work for an employer and are off sick due to your cancer, you may be able to get sick pay either Statutory Sick Pay which by law your employer is obliged to pay if you are too sick to work or occupational or company sick pay payable from your employers sick pay scheme and will vary dependent on your contract.
If you are self-employed you will not get sick pay but you may be entitled to other benefits if unable to work during or after cancer treatment.
Accessing benefits
Depending on your situation, you may be able to get benefits or other financial support during or following cancer treatment.
When you are affected by cancer, you might be able to receive government benefits to assist with the extra costs associated with treatment or financial support if your condition means you have to give up working. Benefits you may be entitled to depend on factors like your age, your income and where you live.
These can include:
Employment and Support Allowance (ESA) is for people under the State Pension age who cannot work because of illness or disability. You can apply for ESA if you are employed, self-employed or unemployed.
Universal Credit (UC) is a benefit for people under State Pension age who are on a low income or out of work.
Jobseeker’s Allowance is for people under State Pension age or who are unemployed but able to work. It gives you a weekly income while you look for work.
Personal Independence Payment (PIP) is a benefit for people aged 16 to State Pension age who have problems moving around or looking after themselves.
Disability Living Allowance (DLA) for adults has now been replaced by Personal Independence Payment (PIP).
DLA for adults was a benefit for people aged under 65 who had problems walking, moving around outdoors safely, or looking after themselves. You may still be getting DLA for adults if you live in England, Scotland or Wales and claimed before June 2013.
Attendance Allowance (AA) is a benefit for people at or above State Pension age who have problems looking after themselves because of an illness or disability.
The State Pension is a regular payment you can get from the government when you reach State Pension age. The current State Pension age for men and women is 65.
Pension Credit is a benefit for men and women who have reached the current State Pension age and have a low income. It's a means-tested benefit which means you can get extra support on top of your State Pension if your income and savings are below a certain level.
How your pension can be affected
Some people stop working during cancer treatment and for some time afterwards, others may carry on working, sometimes reducing their hours or in a different role. This can have an impact on your ability to pay your pension contributions as follows:
- If you are employed and use your holiday allowance to take time off, your pension is unlikely to be affected.
- If you are unable to use your holiday allowance and are getting Statutory Sick Pay you may not receive enough to cover your pension contributions.
- If you are getting occupational or company sick pay then you could continue to pay into your pension as normal, but this depends on your work contract and the rules of the pension scheme.
- Working reduced hours will mean you are paid less and can reduce your pension contributions.
- If you stop working and stop paying money into your pension, your final pension fund will be smaller.
In any of the above circumstances it is advisable to check with your employer or pension scheme administrator how and whether your pension will be affected. It is also worth checking whether you have any extra benefits with your pension policy. They could help you keep up your pension contributions.
Some pension schemes offer insurance against critical illness and your pension will continue to grow even if you are unable to work. Always check with scheme administrator.
Taking early retirement /Accessing your pension early
If you have a private pension and you have/have had cancer, you may be able to retire early due to ill health and claim some or all of your money from a private pension early. There are different ways of accessing your pension and depends on the rules of your pension scheme.
You will not be able to claim your State Pension until you reach State Pension Age, usually 65.
The State Pension is a regular payment you receive from the government when you reach a certain age, usually 65. If you retire early because of ill health, you will still have to wait until you reach State Pension age to claim your State Pension. More information on state pensions can be found at gov.uk
Additional Financial Assistance
You may also be eligible for help from the government or other sources to assist with:
- housing costs including rent, mortgage or council tax payments
- childcare costs
- caring for someone
- modifications you may need to adapt or improve your home
- healthcare costs when you have cancer including help with prescriptions, wigs, supports, dental and eye treatment
- your care if your cancer is incurable or terminal which may include Personal Independence Payment, Disability Living Allowance or Attendance Allowance. These benefits can be applied for under special rules if you have a terminal diagnosis with less than 6 months to live
- bereavement expenses when your husband, wife or civil partner has died. You may be eligible for Bereavement Support Payment, payable if you are under State Pension age when your partner died
For more information on additional financial assistance check GOV.UK
Some organisation also offer discretionary payments to help with the extra costs associated with cancer to those on low incomes and with little savings. These are usually one-off payments. See MacMillan Grants
Health Insurance
If you pay for private medical insurance either yourself or through a company scheme some providers will cover cancer treatment, including hospital stays if required. Some will also pay out even if you receive treatment on the NHS. It is always advisable to check with your health insurance provider or employer on what is covered in your policy with regards to cancer treatment.
Other Helpful Resources
MacMillan Cancer Support - Managing money when you have cancer
Maggies - Help with money worries
