Withdrawing pension at age 55

whitea13

Have been offered a pension I forgot about now I am 55 they have offered 25% tax free and a small monthly sum can I take all money from this fund even if I have to pay tax

Linton

whitea13 wrote: »

Have been offered a pension I forgot about now I am 55 they have offered 25% tax free and a small monthly sum can I take all money from this fund even if I have to pay tax

You can get all the money from a pension if:

1) You are 60 or over AND
..a) your total pension pots amount to not more than £18K
.......OR
..b) The individual pension is worth not more than £2K

OR

2) You have more than £20K/year pension already in payment and can put the pension you want to access into drawdown. For a small pot this would be expensive because of charges and may not be possible at all.

OR

3) You are near to death with a terminal illness

For cases (1) and (2) 25% of the money is tax free and the rest is taxed as income.

So I guess you wont be able to do it.

mania112

Linton nailed it, nothing more to say - all depends how small your 'small' pension is (assuming you're not at deaths-door).

dunstonh

Just because you have been offered the opportunity to commence the pension at 55 does not mean you should. A lot of pensions were set to offer commencement at 55 (or 50 when it used to be that low) but most people in that situation would be better deferring it until their 60s.

Do you need the pension now?