Other than 'ill health' is there any other way to access my pension before 55?

Brynsam

HappyHarry wrote: »

Unfortunately not. It is not legal. Please ignore any companies offering to help you do so, you will lose your money and have to pay heavy tax penalties.

It's perfectly legal - but because it is classed as an unauthorised payment, you pay an arm and a leg in fees and tax.

A SSAS, as the previous post suggests, certainly bears consideration.

HappyHarry

Brynsam wrote: »

It's perfectly legal - but because it is classed as an unauthorised payment, you pay an arm and a leg in fees and tax.

I'm an IFA, not a solicitor/barrister, and am happy to be corrected if I've misunderstood how the legislation works, but ...

No, it isn't legal.

It's against the legislation as noted in the Finance Act 2004 (Section 165 Pension rules Part 1, Rule1)

165 Pension rules
(1)These are the rules relating to the payment of pensions by a registered pension scheme to a member of the pension scheme (“the pension rules”).

Pension rule 1
No payment of pension may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the pension scheme."


The penalties for undertaking such action are also defined, but this doesn't make the action itself legal.

Dox

'Accessing your pension before you've reached the age of 55 is not illegal but, unless you are covered by some very specific circumstances, is not advisable because there will be substantial charges from the company or third party acting for you and this is seen as an unauthorised payment by HMRC and you will be hit with a 55% tax bill on the amount you withdraw.'

Source: https://www.moneyadviceservice.org.uk/en/articles/pension-release-or-pension-unlocking

Terry_Towelling

Don't some occupations have protected minimum pension ages that are lower than 55? I'm thinking of the police/armed forces and the like. Is it also possible that some final salary schemes might still have protected minimums of 50 despite the legislation - or is that something else that has come out of the weird dreams I've been having lately?

HappyHarry

Terry_Towelling wrote: »

Don't some occupations have protected minimum pension ages that are lower than 55? I'm thinking of the police/armed forces and the like. Is it also possible that some final salary schemes might still have protected minimums of 50 despite the legislation - or is that something else that has come out of the weird dreams I've been having lately?

You're not imagining it. A lot of old employer schemes have a protected retirement age of 50. Sportspeople used to be able to have a retirement age of 35, and there still a few of those old schemes around. Not open to new members though!

Silvertabby

Terry_Towelling wrote: »

Don't some occupations have protected minimum pension ages that are lower than 55? I'm thinking of the police/armed forces and the like. Is it also possible that some final salary schemes might still have protected minimums of 50 despite the legislation - or is that something else that has come out of the weird dreams I've been having lately?

Yes - some civil servants/NHS staff still have the right to access their pensions from age 50, but only if they joined the pension scheme before a certain date. Don't know about the police/fire service, but Mr S and I have been drawing our Armed Forces pensions since our mid/early 40s.

OP talks about a 'pension pot' and so is amost certainly in a DC scheme.