We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Can I cashout my Friends Life retirement fund?

Hi there,

I have a Friends Life retirement plan - not sure if I am using the correct terminology.

Anyway can I cash out the full amount now or how does it work? I am only 31.

Cheers
Debt 1 June 2017: £35,000.00 ~ Debt now: £10,000
«1

Comments

  • dunstonh
    dunstonh Posts: 118,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Anyway can I cash out the full amount now or how does it work? I am only 31.
    No you cant.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    No you cant.

    But this is a personal pension that I started, its not associated with any employer or anything like that.
    Debt 1 June 2017: £35,000.00 ~ Debt now: £10,000
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The standard legal restriction for personal pensions is money can only be taken out under one of these situations:

    1. If you are at least 55 years old.
    2. If you are diagnosed with a medical condition that gives you a year or less life expectancy according to your doctors.
    3. If you are dead, when your beneficiaries get the pension pot.

    You can't change your age and fatal illness or death are not desirable routes.

    If you want to have more accessible investments for possible use for retirement income generation, consider use of investments within a stocks and shares ISA instead.
  • sandsy
    sandsy Posts: 1,743 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The clue is in the word 'pension': when starting the contract, you committed to leaving the funds until you reached the minimum pension age which is currently 55yo.


    Did you take advice before you started the pension?
  • JuicyJesus
    JuicyJesus Posts: 3,830 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    But this is a personal pension that I started, its not associated with any employer or anything like that.

    Pensions are subject to tax relief on their contributions, which is why you can't cash out early (otherwise you would be avoiding tax). Where the money actually came from is irrelevant.

    They are also intended for retirement provision, not as a fund to dip into.
    urs sinserly,
    ~~joosy jeezus~~
  • Freecall
    Freecall Posts: 1,309 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I'm still trying to work out the difference between cashing in and cashing out.

    Tricky stuff the finance business.

    ;)
  • dunstonh
    dunstonh Posts: 118,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Freecall wrote: »
    I'm still trying to work out the difference between cashing in and cashing out.

    Tricky stuff the finance business.

    ;)

    No difference as neither term apply to pensions. Although I think I may be missing something given your smiley
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Freecall
    Freecall Posts: 1,309 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dunstonh wrote: »
    No difference as neither term apply to pensions. Although I think I may be missing something given your smiley

    I guess sarcastic irony does not work very well when typed!

    Being a maverick I sometimes fill-in forms when they clearly say to fill them out.

    .....and you know what, sometimes nobody notices.

    :)
  • System
    System Posts: 178,224 Community Admin
    10,000 Posts Photogenic Name Dropper
    Freecall wrote: »
    I sometimes fill-in forms when they clearly say to fill them out.


    Recently I cut a tree down, and then I cut it up.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    Freecall wrote: »
    I sometimes fill-in forms when they clearly say to fill them out.

    I have always assumed that "fill-out" is very much an Americanism?

    Please don't disallusion me!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.