Lump sum at 50

Jedai911

Hi I need some advice regarding the rules which allow you to take your pension at 50 up to the end of this tax year, I have 3 pension plans with friends provident, standard life and pearl which add up to around 17k in total, I saw an article in the Mail on Sunday a couple of weeks ago which said that anyone who has less than 17,499 can draw the whole amount rather than 25% which is the norm, can anyone confirm or deny this fact please?

mad_bad_spender

Deny

You have to be 60 to take pension under triviality

sorry

Jedai911

So I can take about 4250 and then take an annual sum. I am desperate for the cash as I went bankrupt in 2008 and I need a stake to get me started what would you recomend I do??

ffacoffipawb

Jedai911 wrote: »

Hi I need some advice regarding the rules which allow you to take your pension at 50 up to the end of this tax year, I have 3 pension plans with friends provident, standard life and pearl which add up to around 17k in total, I saw an article in the Mail on Sunday a couple of weeks ago which said that anyone who has less than 17,499 can draw the whole amount rather than 25% which is the norm, can anyone confirm or deny this fact please?

You can only take the full amount in cash, on grounds of triviality, from age 60.

Even then, the balance above the 25% tax free cash will be taxable.

dunstonh

would you recomend I do??

Board is unable to give any recommendations in regulated financial services. Even those of us that can in real life cannot do so here.

If you commence retirement benefits now, you are effectively robbing your retirement of a higher income then to give you a lower one now. Also, the three providers you mention all have versions of pensions that had guarantees on them that kick in after age 60. Taking them early will see you lose those guarantees, if you have those versions. Also, in the case of Pearl and possibly the others, there will be a significant penalty if you commence the pension before age 60.

EdInvestor

Jedai911 wrote: »

So I can take about 4250 and then take an annual sum. I am desperate for the cash as I went bankrupt in 2008 and I need a stake to get me started what would you recomend I do??

You are not now forced to take an annual sum.You can leave the 75% invested in 'income drawdown' to accumulate for later, while taking the trax free cash now.This means 'robbing your retirement' is not now an issue.