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Retrieving money early from a pension plan
rm173
Posts: 7 Forumite
Hello,
I'm enquiring for a friend who is not in a good financial position at the moment. He has been paying back a large student loan for the past few years & has been crippled by excessive interest rates, bank charges & penalties for having to go over his overdraft limit.
In his previous job, before going back to college, he paid a monthly amount for a couple of years into a pension scheme. I was wondering if it would be possible to retrieve this money? It's not much but could help him out a lot. He told me it's not possible but I find that hard to believe.
Any information I could get about this would be greatly appreciated.
I'm enquiring for a friend who is not in a good financial position at the moment. He has been paying back a large student loan for the past few years & has been crippled by excessive interest rates, bank charges & penalties for having to go over his overdraft limit.
In his previous job, before going back to college, he paid a monthly amount for a couple of years into a pension scheme. I was wondering if it would be possible to retrieve this money? It's not much but could help him out a lot. He told me it's not possible but I find that hard to believe.
Any information I could get about this would be greatly appreciated.
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Comments
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Not unless he is aged over 50. Even then he can only get 25% of it.
Pensions are retirement savings plans. The Govt doesnt trust people to save long term so it puts a rule in place stopping people taking the money out early.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
dunstonh wrote:Pensions are retirement savings plans. The Govt doesnt trust people to save long term so it puts a rule in place stopping people taking the money out early.
If you want to invest money for your retirement and obtain tax benefits without any restrictions and without loss of control of the capital, use an ISA rather than a pension.Trying to keep it simple...
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