Releasing Cash from Pension Early

jpmw_2 · 23 March 2011 at 6:49PM

Hi,

I'm after a little bit of advice and I know its probably going to be frowned upon but would appreciate any info from any one who knows none the less.

I have a local government pension with a CETV of around £29,000 - (I'm waiting for exact figure from the provider.)

I need to get my hands on some cash fairly urgently and have exhausted all other avenues - I have been advised that I could tranfer into a private pension and release around 7% of the value of the pension - unfortunately that is not enough cash.

I am 40 years old, a full time mature student - so I am not paying into the scheme any longer and I will not be returning to a local governmen position so I'm happy with moving it to an private scheme despite having to retire a little later.

Does anyone know how I could release slightly more from the pension - Ideally im looking to release around £5,000 to £7,000.

Any help woiuld be greatfully recieved.

Thank You

JPMW

jem16 · 23 March 2011 at 7:11PM

jpmw wrote: »

I have been advised that I could tranfer into a private pension and release around 7% of the value of the pension

Advised by whom?

You cannot get access to any pension scheme before age 55.

Transferring your LGPS to a personal pension would require signing off by an IFA and would normally be considered a very stupid thing to do.

jpmw_2 · 23 March 2011 at 8:39PM

I have been advised by an IFA who states that you can get access to a pension before the age of 55, and I have double checked this and it is correct unless new came into law today. I would prefer if anyone who knows anything about this to reply if possible, my personal circumstances dictate that is the only option I have and what may be stupid for someone else is not for me.

Thanks for replying anyway.

dunstonh · 23 March 2011 at 8:46PM

I have double checked this and it is correct unless new came into law today.

What law is this?

I have been advised by an IFA

A real one or an overseas based firm using the IFA title to try and hoodwink you?

jem16 · 23 March 2011 at 8:49PM

jpmw wrote: »

I have been advised by an IFA who states that you can get access to a pension before the age of 55, and I have double checked this and it is correct unless new came into law today.

From April 2010 you cannot access a pension until age 55 except under very specific circumstances such as ill health or death.

Some occupational pensions have a special preserved pension age which is earlier than age 55 but the LGPS is not one of them.

Perhaps you can specifiy what the IFA said?

I would prefer if anyone who knows anything about this to reply if possible, my personal circumstances dictate that is the only option I have and what may be stupid for someone else is not for me.

Thanks for replying anyway.

Your personal circumstances may well dictate that it it is not a stupid option for you but it doesn't really matter as it cannot be done anyway.

jpmw_2 · 23 March 2011 at 11:25PM

Thanks for the replies, I guess Ill just have to go whith what I believe I have been offered, my chance and Im happy to take it.
Thank You all again for the semi judgemental advice.

CAE · 23 March 2011 at 11:45PM

If you have been advised by an IFA, and you have double checked this and think it is correct, then I'm not sure why you are asking a question on this forum. You have been told that it is not possible to access any pension until age 55, but are choosing to ignore this.

dunstonh · 24 March 2011 at 2:28AM

jpmw wrote: »

Thanks for the replies, I guess Ill just have to go whith what I believe I have been offered, my chance and Im happy to take it.
Thank You all again for the semi judgemental advice.

Are you telling porkies by any chance to wind people up?

If not, then there are scam companies out there who will tell you they can do it. There has been no law change today. That alone should put you on guard. The fact the FSA issue warnings on their website about this sort of thing should put you on guard to.

Still, its your money to waste. You can ignore the warnings.

SandC · 24 March 2011 at 10:21AM

I'm with the others, you cannot access pension funds until at least aged 55, and even then it can only be a lump sum of 25% of the value.

Listen to the guys on here, they are not being judgemental, they know what they are talking about.

If you pursue this you are likely to lose money, not gain any. Run for the hills if anyone asks you for any fee or money for this in advance. I am 99% sure that they will.

jpmw_2 · 24 March 2011 at 11:44AM

Perhaps my wording in a previous post is wrong, I am not into this sort of financial matter hence why I posted on here to ask for further information. The money that I would get in return is a fee for changing my pension from a LGPS to a private scheme. It is not taking from the capital of the pension.

And no I am not winding people up - I did as for info and advice but to be honest did not want the attitude or or name calling that happens on this site, which is why I tried to highlight in my first post. Stupid I may be but thats what you get for being a former TA in Afghanistan who is stuffed because of a headshot.

Anyway - thanks again guys.

SandC · 24 March 2011 at 12:02PM

Sounds very dodgy, sorry.

What harm would it do to get a second opinion from another IFA if you don't agree with what's being said on here?

You are now saying you've been told you can get 7% of the value of your pension fund and still keep the £29,000 pot intact? Yet in your first post you infer that you will indeed be looking at releasing some of the funds - so which is it? Not that either are possible.

Releasing Cash from Pension Early

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