cashing in pension

moet32

Hi i have a pension with the prudential

it has a transfer value of £15000

I am 35, is it possible to cash this pension in, i am looking to buy a house and this amount would be very helpfull.

i am in a work pension scheme as well

steve

MikeP_5

Hi

Unfortunately, you can't cash the pension in - the government impose strict limits on when you can and cannot obtain the benefits from a pension scheme - thinking behind it is that they don't want to be giving you tax relief all your life and then have you cash the pension in, spent the lot, and then plead poverty!

If you are 35 now you will be unable to obtain any benefits from the Pru pension until age 55. Then, depending on the limits applicable at the time, you may be able to take 25% of the fund as tax free cash or, again depending on the limits available, you may be able to take the whole fund as a lump sum, less a tax charge. But you can;t touch it til you are at least 55!

You could, however, put part of your mortgage on an interest only basis, and plan to use any lump sum obtained from the Pru pension towards paying off this portion of your mortgage. This would, however, be dependent upon the performance of the pension over the next 20-30yrs, and would not be guaranteed.

Hope this helps!