withdraw pension money

chichi1978 · 9 July 2018 at 2:37PM

Hi experts,

I have this doubt regarding pension money…

I have the current situation:

- Have worked in London for the last 4 years.
- I am moving to Sweden to do a masters (for two years).
- I have my family divided, half in Spain and half here in London.

(I am 29 years old).

If I think long-term, I have no idea where I will be… might be in either spain, uk or Sweden… or Brazil! Who knows?

(I have read that the age pension will be 75 by the time I get there, IF I get there…) Australia is now going to raise minimum retirement age to 70!

Given the scenario… I am thinking to claim back the pension money and invest it myself… is it doable? How?

dunstonh · 9 July 2018 at 2:52PM

(I have read that the age pension will be 75 by the time I get there, IF I get there!!!8230;)

I suggest you change your reading source.

Currently, the minimum age for taking pension benefits is 55. It is planned to be 10 years lower than state pension age (although the act has yet to go through parliament but has been confirmed it will be on a future pensions act).

So, for it to be 75, it would require the state pension age to go up to 85. That is highly unrealistic seeing as it has only gone up 3 years over a 50 year period.

Australia is now going to raise minimum retirement age to 70!

No they are not. They are looking at their state pension age.

It appears you are mixing up the age you get the state pension with the age you have personal provision available.

Given the scenario!!!8230; I am thinking to claim back the pension money and invest it myself!!!8230; is it doable? How?

You cant.

lisyloo · 9 July 2018 at 3:01PM

I am thinking to claim back the pension money

There are only 3 scenarios you can take your pension

1) Hit retirement age (currently 55)
2) Die (when obviously you wouldnt get personally)
3) Have less than 12 months to live

I am aiming for 1).

Dox · 9 July 2018 at 4:05PM

lisyloo wrote: »

There are only 3 scenarios you can take your pension

1) Hit retirement age (currently 55)
2) Die (when obviously you wouldnt get personally)
3) Have less than 12 months to live

I am aiming for 1).

Just to clarify - 55 is not 'retirement age'. It is simply the current minimum age at which those in normal health can access private pension benefits without being walloped by a thumping great tax charge for receiving something called an 'unauthorised payment' - not illegal, but not a good idea because of the tax.

You can take your pension at an earlier age than 55 on grounds of ill health - you don't have to have less than 12 months to live.

If you have less than 12 months to live, this is classed as 'serious ill health' and you can take your whole pension savings whatever your age.

lisyloo · 9 July 2018 at 4:22PM

You can take your pension at an earlier age than 55 on grounds of ill health - you don't have to have less than 12 months to live.

Thanks I didn't know this.
What sort of ill-health conditions would this apply to?
Only conditions where you life expectancy is impaired?

Silvertabby · 9 July 2018 at 5:52PM

!!!8220; You can take your pension at an earlier age than 55 on grounds of ill health - you don't have to have less than 12 months to live.

lisyloo wrote: »

Thanks I didn't know this.
What sort of ill-health conditions would this apply to?
Only conditions where you life expectancy is impaired?

It depends on the scheme rules. In the case of the LGPS, for example, an enhanced pension would be payable from any age should the medical assessment opine that the (current) pension fund member is unlikely to work again before State pension age.

Other pension schemes, particularly DC schemes, are nowhere near as generous.

Dox · 9 July 2018 at 6:04PM

lisyloo wrote: »

Thanks I didn't know this.
What sort of ill-health conditions would this apply to?
Only conditions where you life expectancy is impaired?

To add to Silvertabby's helpful answer - no, life expectancy need not be impaired, but normally the medical condition (which must be supported by written evidence from a registered medical practitioner) must substantially impair your ability to work/earn until at least the scheme's normal retirement age. Scheme rules differ considerably in terms of how they define 'ill health'; some will say 'inability to carry out your normal job' whereas others will be much stricter and say 'inability to carry out any job'.

Useful reading: https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement

zagubov · 9 July 2018 at 7:31PM

To further answer the OP's question. It's very difficult to find other financial products that will prepare you for later financial security as well as a pension.

I foolishly cashed in my (small) NHS pension when I was younger than you and its taken me the rest of my career to make up for it. Learn from my mistake and don't don't don't cash in your pension.

Joey_Soap · 9 July 2018 at 9:01PM

OP - It may not be quite so gloomy. When you are finally settled down, if it is outside the UK then you can sometimes transfer your private/company UK pension to an overseas pension plan. Subject to HMRC rules etc... In force at the time you wish to do the transfer.

lisyloo · 10 July 2018 at 9:58AM

It depends on the scheme rules.

Thanks both.
What does this mean if you have a SIPP? or is this only for final salary schemes?

Brynsam · 10 July 2018 at 11:13AM

lisyloo wrote: »

Thanks both.
What does this mean if you have a SIPP? or is this only for final salary schemes?

You need to look at the rules of your SIPP.

withdraw pension money

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