I haven't read this whole thread but just popped in to say, if it hasn't been said already, that if you have a <12 month prognosis, you can cash out your whole pension, tax free.
I talked to the Macmillan helpline and they arranged for a financial expert to call me. I was able to take early retirement on medical grounds so my pension paid out as if I had worked until I was 67, an extra twelve years worth of payments. There are three grades of medical retirement and I got the top one as I am not expected to be able to work in any capacity again. Together with PIP I receive about the same as when I was working.
It is worth giving the helpline a call and asking them to review your fincial options. They can assist you reviewing your pension options, advise re benefits and any insurance policies.
A friend has done what Galilee mentioned and taken out her whole pension tax-free. This really depends on your circumstances but the people above can discuss that.
Definitely worth looking at PIP for let's call it short-life expectancy. Your medical team fill a form called something like 1500 confirming your "status", you get a call from a financial person (in my case CAB) and that's it. I didn't think I needed it either but the relief I felt when I got it was HUGE. A palliative care nurse friend encouraged me to claim it and it's made a big difference to how I feel about how much stress I must put up with (does everyone else feel like they cannot cope with stress at all anymore??) and work I have to do, certainly. And it's not a death sentence (which is how it felt to me) - if you live longer, they review it anyway.
