Early cashing in of a deferred Final Salary Pension

Bobby_Shants

I am 50 years of age and have a deferred Final Salary Pension worth £5000. This pension has a (Cash Equivalent Transfer Value) CETV of £160000.

Is there a way I can start accessing all or part of this lump sum now or over a period of time, in a tax efficient way, by transferring the CETV to another scheme?, e.g. Private Pension or something else.

jamesd

If the scheme has a preserved age 50 retirement age it's possible, check with the scheme. Otherwise it is not possible unless you have been diagnosed with a medical condition giving you no more than a year to live or are eligible due to substantial ill health to an early pension according to the scheme rules.

atush

And your 'personal reasons should be disclosed here (as no one knows who you are) as there could be options and advice that are pertinent to your situation.

So no, you cant get your hands on the money unless you are 55 or have under 12 months to live. And even if you could, 19 times out of 20 it would be a huge financial mistake.

Bobby_Shants

If I eluded to my personal reasons they could detract people from the questions I'm trying to answer. If was of Ill Health I would have mentioned it!

Bobby_Shants

Are you meaning the scheme I would be transferring to?

GunJack

Bobby_Shants wrote: »

Are you meaning the scheme I would be transferring to?

no, the rules of the scheme you are in, i.e. the deferred one..

molerat

Bobby_Shants wrote: »

Are you meaning the scheme I would be transferring to?

No, the current scheme. Some schemes maintained a retirement age set below the current age of 55.

If you wish to transfer this fund to a DC scheme you will need the advice of an IFA that specialises in DB transfers who will charge several £K for that advice. You will still not legally be able to access those funds below age 55. Anyone who will allow you to access them is acting outside the law and after the scammer and the taxman have taken their cut you will likely have very little left.

Finst

In most pension schemes, you have to wait till age 55 to draw any benefits (other than ill health).

Some pension scheme members have the ability to draw benefits from age 50 because they already had an unconditional right to do so when the rules were changed. This is the preserved pension age jamesd refers to.

You MAY have a preserved pension age of 50 in your current pension scheme, and therefore be able to take early retirement. However, if you transferred this to another pension scheme, you would definitely NOT have a preserved pension age.

So your only option to draw it before 55 is from within the current scheme.

atush

Bobby_Shants wrote: »

If I eluded to my personal reasons they could detract people from the questions I'm trying to answer. If was of Ill Health I would have mentioned it!

Sorry but that isnt the only reason that would matter.

What you need the money for could make a difference in your options and which would be the best one.


But seeing you cant get the money means this is a moot point. But you might have other options that ARE available to you that you havent thought of.

Bobby_Shants

atush wrote: »

Sorry but that isnt the only reason that would matter.

What you need the money for could make a difference in your options and which would be the best one.


But seeing you cant get the money means this is a moot point. But you might have other options that ARE available to you that you haven't thought of.

For Christ Sake, why do you keeping banging on about my personal reasons when I have not mentioned anything about them? The pension company (IN FACT, ANYONE) will have no interest or empathy concerning my 'Personal Reason'. Believe me you or any other person on this forum does not need to know so back off!

xylophone

Is your pension in an unfunded public service scheme?