Can I cash in my pension?

laineyf

Hi, I wonder if anyone can advise us please? My husband is 52 and has a pension with Aegon. It has a value of £26,000, and is a Trustee Proposed Section 32 Buyout Policy. My husband is 52, and has been unable to work since 2003 due to ill health (he is in receipt of DLA and is in the ESA Support Group). Is he able to access any of this money? We are really struggling (as everyone are, I know) but according to his paperwork, the pension isn't payable till 2025, which is a long way off. Any help/advice would be greatly appreciated. Thanks in advance.

xylophone

Hi, I wonder if anyone can advise us please? My husband is 52 and has a pension with Aegon.

Do you have the policy document?
What are the provisions (if any) for ill health retirement?
Is there any mention of a GMP?

laineyf

Hi and thank you very much for your reply. Yes, we do have the policy, but I can't find anything about ill-health. There is mention of GMP. Would it be worth contacting Aegon I wonder?

xylophone

Would it be worth contacting Aegon I wonder?

Only Aegon can give you the definitive answer.

This Scottish Life link may be of interest but because of changes (RPI to CPI, protected rights etc) is somewhat outdated.
http://www.scottishlife.co.uk/scotlife/Web/Site/faq2.asp?category=S32%20buyout%20bonds

atush

And do think about how any extra money in a lump sum or income will affect any current benefits you have.

and have you been to find out from CA or others if you are claiming everything you are entitled too?

Chrissiew

I'm a little confused about all this, the sticky says a pension cannot be drawn untill age 55, my husband is 55 and due to certain circumstances would like to access and draw his private pension now, but I've been told by another poster that he cannot do this untill he's reached retirement age, so which one is it please.

Zelazny

Chrissiew wrote: »

I'm a little confused about all this, the sticky says a pension cannot be drawn untill age 55, my husband is 55 and due to certain circumstances would like to access and draw his private pension now, but I've been told by another poster that he cannot do this untill he's reached retirement age, so which one is it please.

It does depend to a certain extent on the pension. By law, you cannot take pension benefits until you reach age 55, except in a few specific circumstances (ill health, for example - see the first post in the thread for more details).

The pension is governed by rules set out in the Trust Deed - these will usually allow people to apply for early retirement from the age of 55. The catch is that the benefits will be significantly lower than they would be if you wait until your normal retirement age.

Long story short - contact your pension provider. They should be able to provide you with a quote for what you'd get if you did take it now.

(The only thing I can think of from the top of my head that would definitely prevent you from taking the benefits early is if they were entirely made up of Guaranteed Minimum Pension, or EPBs, or the like - which would normally only be an issue to a final salary pension that was accrued before 1991)

dunstonh

Chrissiew wrote: »

I'm a little confused about all this, the sticky says a pension cannot be drawn untill age 55, my husband is 55 and due to certain circumstances would like to access and draw his private pension now, but I've been told by another poster that he cannot do this untill he's reached retirement age, so which one is it please.

In the other thread you asked if you could cash in the pension. No you cannot. However, from 55 you can commence the pension income. The pension provider has given details of what he could get if he commenced the pension income with them.

On the other thread, no-one has said he cannot do this until he reaches retirement age.

It would be best if you stuck to covering your questions on one thread rather than across two as it makes it difficult to communicate that way.

laurel7172

Oh, goody.

A new way to prey on the desperate.

Please-nobody fall for this and everybody hit the spam button to get rid of this ASAP.

dunstonh

So if your pension was worth £50k, we would give you £25k now,

Which would be an unauthorised payment under HMRC rules and subject to penalty fine.

you could invest this in a 4.5% cash isa now and in 15 years time it would be worth £49k,

What about the cost of the fine when it comes a couple of years down the road?
Why not stay in the pension and continue to get investment returns with no HMRC fine?
Why have you not factored in your extortionate cost?

A pension is worked out by dividing your pot by 20/25 years which gives you a weekly sum from the age of 60 or 65, a £50k pension would give you £50 a week.

Now you see why the Govt doesn't let unauthorised people give advice. Pension income rates are currently higher than savings rates. So, you say on the one hand put it in savings to get the income but then knock pensions despite them providing a higher income.

I hope the board does not remove your post as a spam as sometimes it does more good to highlight dodgy and illegal schemes like this.