Other than 'ill health' is there any other way to access my pension before 55?

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DavidP1983
DavidP1983 Posts: 2 Newbie
in Pensions, annuities & retirement planning
Hello all,

My first post here so I firstly apologise if this has been asked countless times before (a quick search wasn't very clear,m but probably my fault).

I am 34 and have a pension pot that is paid into every month.

I am looking to change careers and start my on business.

There are obviously costs involved with that and being able to access my pension for just a small portion of it would be extremely useful.

I have been advised by the pension company that the only way to access this before 55 is due to 'ill health'.

Is this correct? Is there any advice people could offer?

Any advice would be appreciated.

Thank you.
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Comments

  • Stubod
    Stubod Posts: 2,169 Forumite
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    ..as per the advice you have already had, I don't think you can access before 55..
    .."It's everybody's fault but mine...."
  • HappyHarry
    HappyHarry Posts: 1,588 Forumite
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    Unfortunately not. It is not legal. Please ignore any companies offering to help you do so, you will lose your money and have to pay heavy tax penalties.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • le_loup
    le_loup Posts: 4,047 Forumite
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    I agree with what you have been told. A pension is not a savings account, that's why you get tax breaks.
  • Silvertabby
    Silvertabby Posts: 9,024 Forumite
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    HappyHarry wrote: »
    Unfortunately not. It is not legal. Please ignore any companies offering to help you do so, you will lose your money and have to pay heavy tax penalties.


    Harry is right. Anyone who tells you that there is a 'loophole' in the law, which would enable you to access your pension before 55, is a liar and a scammer.
  • DavidP1983
    DavidP1983 Posts: 2 Newbie
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    Thank you guys.
    I thought as much, but thought it best to cover all options.

    Top service here - i'll be using this place a lot more!

    Thanks.
  • xylophone
    xylophone Posts: 44,427 Forumite
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    And when you start your business you'll be making pension contributions?:)

    https://www.pensionbee.com/pensions-explained/pension-contributions/contributing-to-your-pension-from-your-limited-company?ast=Fkx0ld

    https://www.simplybusiness.co.uk/knowledge/articles/2018/01/self-employed-pension-guide/
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    If your pension is the right sort of SIPP it could use a mortgage to buy commercial property that your business could use. The rent would be paid to the SIPP.
    Free the dunston one next time too.
  • atush
    atush Posts: 18,726 Forumite
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    So as you cant use the pension money, perhaps work a but longer and save more to start up your business.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    Easy peasy: marry a woman approaching 55. The she divorces you and you accede to her demand for half your pension. Bingo; at 55 she can draw it down and you and she can share your ill-gotten gains.
    Free the dunston one next time too.
  • Marcon
    Marcon Posts: 10,691 Forumite
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    DavidP1983 wrote: »
    I am 34 and have a pension pot that is paid into every month.

    I am looking to change careers and start my on business.

    There are obviously costs involved with that and being able to access my pension for just a small portion of it would be extremely useful.

    I have been advised by the pension company that the only way to access this before 55 is due to 'ill health'.

    Is this correct? Is there any advice people could offer?

    Have you considered a SSAS? It would seem suitable for what you have in mind and provides an entirely legitimate way to make use of your pension fund (although bear in mind there are risks associated with that, especially if your business flounders). More info at https://www.barnett-waddingham.co.uk/comment-insight/briefings/2014/06/11/what-ssas-and-why-have-ssas/
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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