Early draw down <55 due to Covid

domwk

Considering the dire predicaments that Covid 19 have put us all in we are all looking for ways to find funds.
I am 51 and have a state, government and a couple of private pensions. I am aware that the private ones cannot be accessed before 55. However I would have thought that the government would have relaxed these rules to assist those in need of funds to get by. 
I did contact one of my funds whom I will mention HL and was told this would never happen unless I was dying. Hence my reply you have a job and I do not, as well as my savings have been depleted. 
I do not believe that such a request is unreasonable in this current climate as I certainly do not see myself finding new employment anytime soon. I have also heard that if you were to manage a drawdown you could be taxed upto 50% of the value. 
Your views would be appreciated in desperation of finding a solution to hopefully short term problem.
Thanks

Marcon

domwk said:

I am 51 and have a state, government and a couple of private pensions. I am aware that the private ones cannot be accessed before 55. However I would have thought that the government would have relaxed these rules to assist those in need of funds to get by. 

The problem is that if they changed the rules, there would then be a great many more people reaching retirement with even lower amounts of savings to keep them in their old age. 'Relaxing' the rules as you suggest could have a major impact on benefits for which individuals might otherwise be eligible. 

JoeCrystal

Then find an alternative solution. I assumed you are already claiming benefits that are available to you already such as JSA and the Universal Credits? There will be available casual jobs coming up to prepare for Xmas so you can find temporary work.

Even I would be tempted to access my pension savings at the age of 34, for there is always more critical bills compared to retirement provision so I would much prefer that such opportunities are not allowed. If I had a choice and knowing the upcoming troubles I would be having; I would probably tap the pension pot to pay off my mortgage and clear my loans.

xylophone

There will be available casual jobs coming up to prepare for Xmas 

Are we sure Christmas won't be cancelled.....

Albermarle

 I have also heard that if you were to manage a drawdown you could be taxed upto 50% of the value. 

Not sure where you got this info from .

25% would be tax free and the rest taxed at your normal tax rate - 20% . Or even less if you had no other income.

Otherwise no possibility to access any pension money before age 55

fred246

The 50% charge will be for unauthorized withdrawals before 55. I retired before 55 with preserved rights but was terrified of making unauthorized withdrawals.

Clive_Woody

Albermarle said:

 I have also heard that if you were to manage a drawdown you could be taxed upto 50% of the value. 

Not sure where you got this info from .

25% would be tax free and the rest taxed at your normal tax rate - 20% . Or even less if you had no other income.

Otherwise no possibility to access any pension money before age 55

Not sure if this figure comes from the scammers who claim to be able to get your access to your pension pot before you are 55 and their fees.

dunstonh

Considering the dire predicaments that Covid 19 have put us all in we are all looking for ways to find funds.

It is wrong to think everyone is short of funds.  The majority of people are not.

However I would have thought that the government would have relaxed these rules to assist those in need of funds to get by. 

All that would do is create a bill later on down the line as people run out of money earlier.  

I do not believe that such a request is unreasonable in this current climate

The age is actually increasing to 57.  So, its unlikely to go back to 50.      

I have also heard that if you were to manage a drawdown you could be taxed upto 50% of the value. 

It can go higher than that potentially.   It can also be a  lot lower.  I suspect you are looking at the wrong figure though as 50% if the penalty charge for unlawfully accessing your pension outside of the rules.

cfw1994

Is it me, or has there been an increase of....er...... very unusual first posts in this forum recently?

OP, if you have a genuine challenge with money, there are some wise words above.
In addition, I would suggest contacting https://www.citizensadvice.org.uk, or perhaps your MP if you think the Government should dramatically adjust pension laws for you (& others perhaps in a similar state).
Do let us know how you get on

Albermarle

Is it me, or has there been an increase of....er...... very unusual first posts in this forum recently?

I do not feel there has been an increase , there is always a steady stream of them 

AnotherJoe

domwk said:

Considering the dire predicaments that Covid 19 have put us all in we are all looking for ways to find funds.

Not everyone is

I am 51 and have a state, government and a couple of private pensions. I am aware that the private ones cannot be accessed before 55. However I would have thought that the government would have relaxed these rules to assist those in need of funds to get by.

Well, they havent. Contact your MP.

I did contact one of my funds whom I will mention HL and was told this would never happen unless I was dying. Hence my reply you have a job and I do not, as well as my savings have been depleted.

If that person did release your funds to you, they would no longer have a  job as they would be fired, and HL would be fined as would you, negating the entire purpose of the withdrawal.

I do not believe that such a request is unreasonable in this current climate

Contact your MP then, rather than being abusive to employees who are following their company and government rules

as I certainly do not see myself finding new employment anytime soon.

Have you tried?

I have also heard that if you were to manage a drawdown you could be taxed up to 50% of the value.

If you illegally did manage to get access,  the fee and the tax charge woudl likely be larger than what you got out. There have been posters here who have been hit by this, eg they actually have less than when they started. Usually because they fell prey to a shyster (and anyone who promises you early access WILL be a shyster. Please dont be posting back here in 6 months saying this happened to you.

Your views would be appreciated in desperation of finding a solution to hopefully short term problem.
Thanks

Take short term job(s), whatever it is. Apply for benefits. Apply for jobs in your field if available. Cancel unnecessary spending. Look to downsize.