ill health retirement lump sum

Hi Postie1973,
Paying off a legitimate debt shouldn't cause 'deprivation of capital'. However it is important to keep proper receipts etc to show what money has been paid in and out.
Given that you are taking ill health retirement, it is important to take proper financial advice as to the amount you might receive as a lump sum and what is paid thereafter. (This should be from a properly qualified pensions advisor- just make sure that the deal is correct for you and not disadvantageous, do this before you take any money. Even if you have signed some sort of deal it is vitally important to understand what money is available and how/when- get advice now to check the deal if you haven't done do already as you may be signing away a lot of money.)
Also this is a good time to seek advice from a proper benefits advisor firstly to give detailed advice about deprivation of capital, as we can only give outline advice here in B&W, but more importantly to check benefit entitlement and potentially to do a state pension forecast to see what you may be entitled to later, and whether you have sufficient contributions. Equally, you will also be advised as to what benefits you might get, which might include PIP . The members guides on here may also help.
Good luck.
LL26