Confused

Archie911

The schemes normal retirement age is 60

jem16

Then it's likely that you will have a reduction of 25% on both the pension and the lump sum. You will also not be able to take the lump sum without taking the pension.

Archie911

Very disappointing news! I thought being able to take a lump sum was too good to be true! Thank you all for the help, much appreciated.

jamesd

You probably do have other options. Say you own your home, you could use a mortgage for borrowing and plan to repay at normal retirement age with the lump sum. If not a standard mortgage you could use an equity release mortgage of the type that lets you draw money when you want and repay if you want to.

You could also use 0% for spending credit card deals and balance transfer deals, again planning to repay eventually with the pension lump sum at normal retirement age.

The normal mortgage or equity relase options are safest for the six year timescale that you need.