Pension Release

dj4wills

Hello, i'm new to the forum, and desperately need some advice. I have a pension that was frozen about ten years ago. Due to ill health, I haven't worked for four years, and unfortunately it's unlikely i'll be able to work again. Is there any way I can release the money in my frozen pension, and if not, is it worth looking at a pension-backed loan? Many thanks.

CannySaver_2

Hi

Sorry to hear about your ill health, some schemes, usually of the occupational variety may allow early retirement due to ill health.

What type of scheme are you in?

How old are you?

Pension loans or schemes where you can access your pension are to be avoided, they are generally offered by non regulated firms and you have a serious danger of getting ripped off.

The Canny Saver

dunstonh

is it worth looking at a pension-backed loan?

Only if you are looking to be ripped off by fraudsters, lose the bulk of your pension, suffer a 55% HMRC tax penalty a few years down the road and then find yourself having to pay the loan back after spending all the money.

Loughton_Monkey

Your pension is not 'frozen'. It will continue to grow over time, and will provide you with some cash/income at any time from age 55 upwards.

Do not consider any 'arrangement' that claims to 'release' or 'lend' money from the pension, since any such arrangement is probably a rip-off. People who do this would have no sympathy with ill-health and indeed are more likely to use it to put more pressure on you.

Sorry, but I suggest you look for other ways to 'live' financially for the moment, and leave your pension where it is.

pensionslaw

It sounds on the face of it as though you could meet the "ill health condition" allowing you to take your pension before age 55 without resorting to dodgy pension-backed loans. See my post of about 20 minutes ago on the thread "Pension Reciprocation Plan - Is this legal? "

NB: could is not the same as should. I'm just mooting what's legally possible, not what's financially prudent. End of back-covering.