Help

Jenalladene

Please can someone help with advice? My friend has a large income tax bill to pay and has enough money in a frozen pension with the Pru to pay the Inland Revenue who are on his back. He wants to pay it off desperately as it is causing him a lot of stress. Is there any way to get his hands on this money? I have told him that a pension is not like an endowment and is probably inaccessable until he is 65 but does anyone know any different? He is awaiting an operation which is going to lay him up for a few months and seeing that he is self employed, this is going to cause him even more money problems and stress. Please, does anyone have any advice?

dunstonh

Is there any way to get his hands on this money?

No. The Govt dont give tax relief, tax invcentives to the employer and tax free growth to allow people just to spend it willy nilly before retirement.

I have told him that a pension is not like an endowment and is probably inaccessable until he is 65 but does anyone know any different?

Yes, its nothing like an endowment. However, it is part accessible at 50 (rising to 55 from 2010). It is always only part accessible (25% of value between age 50 and 75 or full amount minus tax at age 60 if all pensions are valued at less than 1% of the lifetime allowance).

Please, does anyone have any advice?

Tell him to join the board and post a statement of affairs in the debt free wannabee section. He clearly has money problems and some help from that section on what to look at and where to get advice would do him the world of good.

Jenalladene

Thank you so much for that. Very much appreciated.