cashing out frozen/defered pension

gazmoore

iv seen adverts lately about being able to access some money from frozen pensions,after 21 years with british steel I was made redundant in 2001,im now 49 and was just seeking a bit of advise.what are the pros n cons if this indeed possible.

thanks for taking the time to read this

jem16

gazmoore wrote: »

iv seen adverts lately about being able to access some money from frozen pensions,after 21 years with british steel I was made redundant in 2001,im now 49 and was just seeking a bit of advise.what are the pros n cons if this indeed possible.

thanks for taking the time to read this

Your British Steel pension isn't frozen but deferred. Each year it will increase in line with inflation.

You are legally not allowed to access any pension until age 55 at the earliest. Any schemes offering to do so are illegal, often scams and will see you hit with a very large tax bill. Do not go near them.

As to your BS pension, leave it alone until normal retirement date. It's the best thing you can do.

atush

Yes, your pension is one of the best type- a Final Salary pension. It is quietly growing in size each year until you retire. And is safe from being taken into acct for any means tested benefits you are receiving.

So you should not touch it until scheme age and look to the CAB/JC for help in making sure you are getting all your entitlements.

dunstonh

v seen adverts lately about being able to access some money from frozen pensions

scams. Plenty of them advertising (typically in areas where the regulators are slow to catch on). However, HMRC and the FCA (and a few others) are actively catching up with them and more importantly, the people that use them. HMRC has a 55% tax penalty on those that take their pensions unlawfully. They usually catch up about 3 years after the event.

honizz

I had an email from my advisers telling me that there are firms out there, typically cold calling that are trying to get people to cash in their pensions before age 55. They said in a round about way don't touch with a bargepole

H

atush

They were correct. Bargepole, dont' touch with.