Taking cash out of pension plan.

Tr@cker

I have a company pension which is payable when im 60 with a cash lump sum (im 53) Ive heard of firms who specialise in unlocking some of the cash for over 50's, i could do with some cash right now but have no idea how this will affect my pension except that obviously i'll get less.
Does anybody have any advice on this please ?

dunstonh

A number of these firms that used to advertise about pension unlocking got fined for doing so and encouraged the Govt to raise the age commencement from 50 to 55.

As it is an occupational pension you are talking about, you would need trustees permission to commence it early and that is unlikely at 53.

exil

Sometimes you will be able to take a pension that is "actuarily reduced" .Think this is usually about a 5-6% reduction for each year early you start taking it. You might consider this if your other income isn't enough to live on. It's another version of the "defer pension or not" question.

EdInvestor

You should contact your old company direct and ask what deal they would give you if you took early retirement - ie by how much your pension would be reduced, if they would offer a lump sum, also ask what your pension will be if you wait to normal retirement age.

DON'T use any of these pension unlocking companues, who charge massive fees and rip you off.

Come back here and tell us when you've received some figures from your old company and we can say if it's sensible to accept the deal or not.