advice needed

HARDUP

i have debts of 25k on credit cards and pay only min each month, crap credit score due to missing payments, i can release my pension from prev employer at 50 which gives me a lump sum of £27K and £5k pa pension. am self employed at the moment but most of my money goes on repayments!! By taking my pension at 50 I lose 50% as opposed to waiting till i am 60. Should i take my pension and clear my debts?

[Deleted User]

I think you will find its now 55 not 50 (from last april)the earliest you can take a pension

HARDUP

can defo take my pension at 50, have written offer from my previous employer, just not sure whats best as I really want to clear my debts,

Consumerist

They do say that a bird in the hand is worth two in the bush.

You do seem to understand what you will be sacrificing by taking your pension ten years early but you should also consider that the effect of that will affect the rest of your retirement. As you are self-employed at the moment, it is not clear to what extent you can rely on the State Pension and Pension Credit to supplement your income.

You should be realistic about your retirement circumstances before taking such a far-reaching decision. I would suggest you take professional advice before doing anything rash.

HARDUP

thanks consumerist, I have an element of my salary as paye so my state pension is covered, if I can clear my debts I can save my £5k pension. Does need some serious thought but do not want to borrow to clear existing debts.

Consumerist

Will you have another pension income ? Is it secure i.e. are your current earnings secure ?

You need to add up your estimated retirement income from all sources to see whether you can live reasonably comfortably on that income. Will that income increase to keep pace with inflation ?

The prospect of paying off your debt is attractive. But do make sure you fully understand the consequences before deciding.