pension early

billozz

is it possible to take money from a pension pot earlier than retirment age.
i have a personal pesion which isnt worth very much from an annuity point of view about £12000. but that ammount would come in very handy now to pay a few debts etc. i am 53 years old and wonderd if i could just stop paying the monthly ammount and take some or all of the pot
thanks
Bill

Thrugelmir

You need to be 55 to draw down the "pot".

taking_stock

Thrugelmir wrote: »

You need to be 55 to draw down the "pot".

what he said..... which is what everyone says..... every week on this board.

somethingcorporate

taking_stock wrote: »

what he said..... which is what everyone says..... multiple times a DAY on this board.

I fixed it for you. :j

mania112

billozz wrote: »

wonderd if i could just stop paying the monthly ammount

Yes

billozz wrote: »

and take some or all of the pot

No. You can withdraw up to 25% tax free at 55 (plus a smaller taxable income)

You might be eligible to take the whole lot by way of Triviality Rules at 55 (if you have no other pensions)

billozz wrote: »

thanks
Bill

Pleasure

hugheskevi

You might be eligible to take the whole lot by way of Triviality Rules at 55 (if you have no other pensions)

Triviality can only be exercised after age 60 - see here.

gadgetmind

So, in (guess) 30 years of working, even ignoring tax relief and growth, you have managed to save about 8 quid a week into a pension. If we figure in some growth and the tax relief, what did it cost you from your pay packet? Maybe a fiver a week? What annuity have you been quoted? Maybe 15 quid a week?

Seems like a good deal. Shame you didn't put in more than a fiver.

(And apologies if it seems like there is some bad attitude around, not least from me, but supporting yourself in old age is kind of important and worth planning and investing.)

billozz

You might be eligible to take the whole lot by way of Triviality Rules at 55 (if you have no other pensions)


Pleasure[/QUOTE]

i dont have any other private pensions, so if i dont touch it until im 60 will i be able to take the lot in one go, and does this still apply if i take 25% at 55
thanks for the answers everybody except gadgetmind who chose not to answer the question but to judge me without knowing my circumstances

dunstonh

so if i dont touch it until im 60 will i be able to take the lot in one go

yes. Minus a tax charge to take the tax relief back (effectively)

and does this still apply if i take 25% at 55

no. If you commence the pension, you cannot exercise triviality later (its actually technically possible within the rules but rarely available).

gadgetmind

billozz wrote: »

i dont have any other private pensions

Do you have *any* other pensions other than state pension? This is an area where you have to tread very carefully.