Old pension wanting to cash out at 35

Madfool

I have a small pension fund (not my main) worth about £6,000 currently with Royal London. I do not pay into it and have not done so for about 10 years, it's from old employment.

From my research i know there are companies out there which will do it for you, but they are very shady, don't tell you all the small details like the 55% tax you need to pay etc

It's not illegal, it's my money, i just need to pay 55% tax on the sum.

Now can i do it myself? Just phone up Royal London, and request a payout? Obviously i would happily pay the 55% tax as that is teh law. I do not need the pension fund to sit there until retirement @ 60 as i have a main pension fund for this. Yes i know i could transfer this over to my main, but with my current situation right now I could do with the £2,700.

molerat

You cannot "cash out" a pension unless you are over 55 (except in very limited circumstances). The pension companies will not let you do it as they face penalties for allowing it. The only way you can get at the money is by using these "shady" people who will [STRIKE]invest[/STRIKE] rip you off for half of it leaving you to pay 55% tax on the whole amount. Have you figured out how much you will be left with ? Yep, around -£300. It is not "your money", it is in trust, it stopped being "your money" when you put it in a pension.

dunstonh

From my research i know there are companies out there which will do it for you, but they are very shady, don't tell you all the small details like the 55% tax you need to pay etc

You cannot cash in a pension under 55. These companies are fraudsters.

It's not illegal, it's my money, i just need to pay 55% tax on the sum.

Its not illegal. its unlawful.

Now can i do it myself?

no.

but with my current situation right now I could do with the £2,700.

And you are not going to get it this way.

Madfool

Well that's just annoying, transferring it over then and i'll enjoy it in 20 years time lol Thanks for the replies guys.