Private Pension withdrawal

alboy12

I have a private pension with Scottish Widows.

Due to the impact of the cost of living etc and needing a car is it possible to withdraw from my pension pot? I suspect they'll be a fee to pay but any advice welcome before I contact them next week.

molerat

How old are you - at least 55 ?

What and how you can withdraw money all depends on the type of pension.

Albermarle

There probably will not be a fee, but much more important is how withdrawing money now, will affect your income in retirement, or your ability to retire early.
You need quite a substantial pot to have a reasonable income in retirement.

alboy12

Thanks for the replies

I am 49 this year and currently there is 46k in the pot and would be looking at possibly withdrawing 9k if allowable. 
I am not sure of the type of pension but I am under no illusion looking  at he figures its not worth much and I am also resigned to the fact ill probably have to work until I'm put in a coffin. I just need a little help now.

TadleyBaggie

You need to be at least 55 to be able withdraw money from a pension, the only exception is if you were terminally ill.

molerat

TadleyBaggie said:

You need to be at least 55 to be able withdraw money from a pension, the only exception is if you were terminally ill.

This

And if someone offers you the opportunity to transfer the funds and withdraw some don't do it.  It will be a scam, you will likely lose what you don't get in cash and HMRC will be chasing you with a big tax bill based on the whole fund amount, probably for more than you took out.

Brie

Perhaps there could be some advice available over on the dealing with debt board?  It doesn't need to be about debt specifically but help with budgeting is something many of us need and there may be some ideas on how to sort things.  Or if it's just the car that the issue maybe someone on the motoring forum could suggest how to finance a car more easily.  (I always go for credit cards and do a 0% balance transfer but that's just me)

dunstonh

TadleyBaggie said:

You need to be at least 55 to be able withdraw money from a pension, the only exception is if you were terminally ill.

Rising shortly to 57 and later 58 (it follows 10 years less than the state pension age).

Due to the impact of the cost of living etc and needing a car is it possible to withdraw from my pension pot? 

You cannot do what you want to do, so its not an issue yet.  However, robbing your retirement years to pay for things in your working years is not a solution.      It may seem like an easy one but all you are doing is deferring the problem and making things more difficult for yourself in later life when you may need that money more.