I want to take pension before 55

SgtOddball

Good evening all,

I'm a teacher and I'm part of the teacher's pension scheme- I want to leave that pension alone. But right now, I need some ready cash ASAP. I've no other way of raising it. I've tried...

I have a another pension from a former job. The details of which are:

Value on 30.05.2015 is £19135.84
It is projected that when I am 65 I will most likely be due £5851.53 as a tax- free lump sum followed by £870 per year.
Any amount that I look to remove from the plan before my 55th birthday will be subject to 55% tax.
45% of £19135.84 is £8611.13

Taking all of this into account I wish to remove the entire £19135.84 (subject to 55% tax- £10524.71) which would in effect become a payment of £8611.13 into my current account and I'd pay the remainder as tax.

The pension provider is not keen for me to access the money.

Can I do this? How do I do this? Who is best to talk to about it?

Any advice on legalities and how-to is most welcome.

dunstonh

The pension provider is not keen for me to access the money.

The pension provider has no such preference. They will either do it if the rules allow or they wont if the rules do not allow.

As you are asking to unlawfully access the pension before age 55, they are almost certainly telling you that you cant.

Can I do this? How do I do this? Who is best to talk to about it?

You cant lawfully.

SgtOddball

Thank you for the reply, I really appreciate it.
Not even if I am willing to pay the 55% tax penalty?

molerat

The tax is a penalty if you do manage to access the pension unlawfully. The pension provider could also face sanctions for not carrying out due diligence and allowing you access.

atush

SgtOddball wrote: »

Thank you for the reply, I really appreciate it.
Not even if I am willing to pay the 55% tax penalty?

Not even as I dont think any pension company would allow it as this appears to be a DB (not DC)plan.

You appear to have a severe debt, of some kind. which your pension is actually safe from.

So why not look at selling assets like cars, house etc, borrowing. Reducing outgoings, getting help from the govt sponsored debt advice service?

You are asking to do something illegal and pay a huge fine (plus costs) and lose 70% of a safe from debt asset. These are not the actions of a sane person.

xylophone

http://www.moneysavingexpert.com/savings/pension-liberation:

:eek:

Is there no prospect of promotion? A weekend job? A loan from your bank? Changing the term on your mortgage?

Orwell

You don't give your current age, but if you were say 45, maybe you could find someone (like a parent) willing to advance you the money now in return for repayment (including investment growth) in ten years time, plus a bonus of something rather less than the 55% tax charge! Could be a good deal all around rather then handing 35% more than BRT to HMRC.

mgdavid

4 posts all pushing some free book which is totally unattributed on the web page; reported as spam.