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Is there any way to access pension early

longwalks1
Posts: 3,818 Forumite


Theoretically of course.
Aside from critical illness, is there any way at all to access a private SIPP before the age of 57 (for someone who is 49 currently).
Asking for a colleague, who has more than they need to retire now, but cant draw it for another 8 years (unless the government up the age limit again)
Is there any scenario at all that would allow them access some of it?
Aside from critical illness, is there any way at all to access a private SIPP before the age of 57 (for someone who is 49 currently).
Asking for a colleague, who has more than they need to retire now, but cant draw it for another 8 years (unless the government up the age limit again)
Is there any scenario at all that would allow them access some of it?
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Comments
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In short, no.6
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longwalks1 said:Theoretically of course.
Aside from critical illness, is there any way at all to access a private SIPP before the age of 57 (for someone who is 49 currently).
Asking for a colleague, who has more than they need to retire now, but cant draw it for another 8 years (unless the government up the age limit again)
Is there any scenario at all that would allow them access some of it?
Currently an inherited SIPP can be accessed at any age, just in case that's relevant?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
Although you cannot access the pension directly, it might be possible to borrow and repay the debt using the pension at age 57.
A mortgage would be an obvious way to do that, although there could be complications around justifying what funds would be used for, and that you do not foresee changes to income in the future.5 -
Marcon said:You don't have to be critically ill but you would need to have medical evidence that you qualify for ill health early retirement, in which case there is no lower age limit at which this can be paid. Hopefully (for all the right reasons) that doesn't apply here.
Currently an inherited SIPP can be accessed at any age, just in case that's relevant?0 -
hugheskevi said:Although you cannot access the pension directly, it might be possible to borrow and repay the debt using the pension at age 57.
A mortgage would be an obvious way to do that, although there could be complications around justifying what funds would be used for, and that you do not foresee changes to income in the future.
He was even considering marrying his long term partner (of 25 years) and then divorcing and agreeing to hand over half the SIPP as settlement0 -
My understanding is that you can often access a SIPP early - but face considerable taxation to do so.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
theoretica said:My understanding is that you can often access a SIPP early - but face considerable taxation to do so.5
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longwalks1 said:Aside from critical illness, is there any way at all to access a private SIPP before the age of 57 (for someone who is 49 currently).
Asking for a colleague, who has more than they need to retire now, but cant draw it for another 8 years (unless the government up the age limit again)1 -
eskbanker said:Were they advised to commit so much into inaccessible form, in the knowledge of a desire for very early retirement, or have circumstances changed unexpectedly? Just wondering if there's the potential for action against an adviser?A fortunate/unfortunate situation to be in at the same time.0
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longwalks1 said:eskbanker said:Were they advised to commit so much into inaccessible form, in the knowledge of a desire for very early retirement, or have circumstances changed unexpectedly? Just wondering if there's the potential for action against an adviser?A fortunate/unfortunate situation to be in at the same time.
Most people who want to retire very early will have funds outside their pension to bridge the gap until they can access their pension.
Using an ISA would be popular.
You can over a shortish period use debt such as credit cards but 8 years is a long time to juggle that.
Are there any substantial assets, such as equity in a home, that could be used?1
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