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41 and want to take my contribution to personal pension
Shady01
Posts: 2 Newbie
Hi, I can't find this anywhere so I'm posting it here seeking help. I have a personal pension it was taken over by Aviva can't remember who it was opened by. My employer and myself paid into it, I got made redundant about 3 years ago, the pension is now closed as I couldn't afford to pay in what I was when working (think it was about £8 a week) so my question is as follows; I am 41 is it possible for me to remove all what I paid in in a lump sum?
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Hi, I can't find this anywhere so I'm posting it here seeking help. I have a personal pension it was taken over by Aviva can't remember who it was opened by. My employer and myself paid into it, I got made redundant about 3 years ago, the pension is now closed as I couldn't afford to pay in what I was when working (think it was about £8 a week) so my question is as follows; I am 41 is it possible for me to remove all what I paid in in a lump sum?
Generally no, unless you have a terminal disease and only six months to live. You can access your pension from age 55 years onwards, anything before this is dodgy and you risk losing all your money and having to pay tax for the privilege of doing so.0 -
It will be in your documentation, so read that. If this is a defined contribution scheme, you have to be over 55. The only circumstances where it might be possible are if you are seriously ill, see here: https://www.gov.uk/early-retirement-pension/personal-and-workplace-pensions.
Be wary of any person or company that says they can get access to it for you. You could pay 55% tax on that if you do it. But maybe you are happy paying 55% tax?0 -
o my question is as follows; I am 41 is it possible for me to remove all what I paid in in a lump sum?
No. As its a pension, that means you can only access it during the retirement age range of 55 onwards.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 -
I am 41 is it possible for me to remove all what I paid in in a lump sum?
Yes. If you can find someone to whom you can transfer and then do that, it will be classed as an unauthorised payment because it is made before the age of 55. You are, I hope, not terminally ill with supporting medical evidence that your life expectancy is no more than 12 months (not 6 months as suggested above).
You will suffer a huge tax charge (55%) and the outfit helpfully 'liberating' your pension will have fees which will probably eat up at least half of the pot.
You will be left paying out more in taxes and charges than you currently have in your pension savings, so probably not a good idea.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Probably worth speaking to a pensions advisor about getting the money into a lower rate plan that you can contribute to, even a small sum with tax additions is worth doing for the future
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Thanks everyone for your help I think I will just leave it then, thanks again.0
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