Early release of Company Pension at 51 years old

Larry51

Any advice appreciated on the merits or otherwise of trying to take a pension early. I have a deffered UK Company final salary pension due in under 4 years when I will be age 55. I took this option some years back under a voluntary redundancy scheme - I worked for the Company for 28 years.

I am now very seriously considering asking the Company if I can take the Pension - or part thereof - early , I am now aged 51 years.

I read somewhere I could take 25% of the Pension after age 50 - is this correct ?

Advice appreciated.
Larry

dunstonh

I read somewhere I could take 25% of the Pension after age 50 - is this correct ?

Not on an defined benefit occupational scheme. The decision to move to a calculation method that gives a close match to 25% equivalent does not have to be made yet. Some schemes have. Some have not. One thing you wont have available to you within the scheme is the option to take lump sum without the income (technically possible but I am not aware of any defined benefit schemes that have).

Your biggest issue is going to be the size of the penalty for early commencement and that assumes they allow early commencement. You may find that transfer is the only option if you want it now and that will almost certainly come at a penalty.