Getting pension early

luckybert

Hi

I am interested in getting my pension early. L & G have told me I have to wait until I'm 55 (I am 51) so I googled and contacted a firm which can release it or some of it early.

They then rang me from a mobile number (called Delta pensions). He explained that I can get 10% of my pensions fund and it's invested into a SIP.

Is this a scam? I've read stuff online and there wasn't any detail online that he could point me towards so I am reluctant at this stage.

Has anybody done this or used these in particular?

cloud_dog

Scam is a very big word to use in this instance.  Is it doable, yes, is it accessible under HMRC rule, no.  There is a caveat to the no it is not accessible, which is if you have a life threatening illness and have been diagnosed with less than 12 months to live.


What these people do not tel you is that you face a tax bill likely to be bigger than the monies you release (assuming you actually receive them) and will end up being financially worse off than not actually doing it.

Please do not do it.  Look for other options.

Silvertabby

It's a scam.  Unless you have an old type pension with reserved rights to access from 50 (very rare and L&G appear to have ruled that out), or have been given less than 12 months to live, then the earliest you can legally access your pension is 55. 

molerat

You cannot access your pension before age 55 except in very limited circumstances.  Anyone telling you otherwise is trying to scam you.  It is that simple.

tacpot12

What are you interested in getting your pension early? 

Malthusian

It's a scam. Change your phone number and email address as you will be getting a lot more calls from scammers.

cloud_dog said:

Scam is a very big word to use in this instance.  Is it doable, yes, is it accessible under HMRC rule, no.  There is a caveat to the no it is not accessible, which is if you have a life threatening illness and have been diagnosed with less than 12 months to live.

Or if you have been forced to retire from work by ill-health, certified by a medical professional, and the scheme rules allow taking the pension under the "serious ill-health" rules. (Edited: see Brynsam's correction two posts down.)

xylophone

See https://www.fca.org.uk/scamsmart/types-of-pension-scam

Brynsam

Malthusian said:

It's a scam. Change your phone number and email address as you will be getting a lot more calls from scammers.

cloud_dog said:

Scam is a very big word to use in this instance.  Is it doable, yes, is it accessible under HMRC rule, no.  There is a caveat to the no it is not accessible, which is if you have a life threatening illness and have been diagnosed with less than 12 months to live.

Or if you have been forced to retire from work by ill-health, certified by a medical professional, and the scheme rules allow taking the pension under the "serious ill-health" rules.

Ill health retirement can be at any age - the scheme rules will set out what the 'test' is (e.g. too ill to work in any job again).

Doesn't have to be serious ill health, which has a particular meaning (life expectancy is certified by a registered medical practitioner that the member has less than 12 months to live). 

Malthusian

Brynsam said:

Doesn't have to be serious ill health, which has a particular meaning (life expectancy is certified by a registered medical practitioner that the member has less than 12 months to live). 

Thanks for the correction - I'd got it into my head that "can't work anymore" was called serious ill-health and "12 months to live" was called terminal illness, but it is in fact "ill-health" and "serious ill-health".

Brynsam

Malthusian said:

Brynsam said:

Doesn't have to be serious ill health, which has a particular meaning (life expectancy is certified by a registered medical practitioner that the member has less than 12 months to live). 

Thanks for the correction - I'd got it into my head that "can't work anymore" was called serious ill-health and "12 months to live" was called terminal illness, but it is in fact "ill-health" and "serious ill-health".

Your definitions would make far more sense and be a darned sight clearer than HMRC-speke!

kangoora

100% a scam, cut off all contact and block numbers.

https://www.moneyadviceservice.org.uk/blog/the-dangers-of-pension-release