Withdrawing early from my pension pot.

[Jasonoughts]

Hi Guys / Girls,

 

Is it possible to take money out of my pension at the age of 53?

 

I am due a payment of £49,000 25% when I am 55,  but debts are getting out of control, and looking to maybe take £12,000  to make my life more comfortable  until then.

 

There is a company called "pension release" doing the rounds on social media, but I can not see a FCA registration number for this company, and will avoid like COVID-19.

 

Any advice would be helpful in companies that can help me in releasing any capitol early. 

 

Kind regards

 

Jason and the NOUGHTS

 

 

[honeybee13]

I don't think you can draw on it before 55, unfortunately, because the government changed the rules.

 

As you say, be very wary of companies online, especially if they aren't regulated. If your current pension is with a company, you can ask them for advice, or you also have Pension Wise which has been renamed but is staffed by people who have dealt with pensions in their working lives. It's free.

 

Pension Wise: free pension guidance | MoneyHelper

WWW.MONEYHELPER.ORG.UK

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Pension Wise is a free and impartial government service that helps you understand the options for your pension pot. Get free pension guidance...

 

HB

[mantis shrimp]

If you release capital early, then - to state the obvious - it will not be available to you later. I am sure that you realise this: just make sure that you think these things through carefully. 

[dx100uk]

never use your pension to pay off debts!

 

list your debts please

why do you think you need to do this?

 

dx

 

[Shirleygirl]

Unfortunately as cost of living goes up many of us are wrestling with the same issues. I am also considering doing this.

[unclebulgaria67]

Contact your pension company and don't use a third party release company, who will charge fees or a large chunk of any pension amount paid early.

 

As stated, Government changed the rules so more difficult to release pension early. Your pension company will be able to answer your enquiries.

[dx100uk]

Who says the debts are even enforceable or really owed??! Especially if they are consumer credit related..... 

 

Very bad idea

[AndyOrch]

Early release of private pension pot pre 55 would only be considered on medical grounds as far as I'm aware.

[Jasonoughts]

Hi Guys / Gals

 

As the original post said, I am in for a pay out of over £48,000 when I am 55, at 25%

 

However, i was asking a question in regards to maybe getting £13000 before I am 55.

 

This will sort out some money problems my side.

 

I am not in debt as such guys and gals, but with the cost of living rising,  it will help me.

 

I live alone now with my wife passing away and debts are rising.

 

I owe £6400 on a car loan ( not finance) , monthly repayment is £264 and my interest free credit card is £3500, with a £80 monthly direct debit.

 

Was just thinking ahead.

 

in Theory i am not using my pension to pay off any debts, I am due a 25% payoff when I am 55 ( £48,000), was just seeing if i could take £13,000 before that date.

 

So just take it off the balance owe.

 

Kind regards

 

Jason and the NOUGHTS

 

 

[dx100uk]

if this is a private pension you should be able to do it directly to your pension company

you dont need anyone to advise or help you, they'll only take a big cut.

 

who is your pension with and what job provided this pension, taking it before 55 has sever penalties unless health plays a part.

[Jasonoughts]

Hi,

 

It is a private pension, like mentioned above i am getting 48 - 52,000 at the age of 55 depending on the growth with "standard life"

 

Just needed to tap into it now, hope you can see my logic. 

 

kind regards

 

[honeybee13]

I can see your logic, sadly the government don't.

 

Is this lump sum 25% of your pension fund, the tax-free cash part?

 

HB

[Shirleygirl]

Actually I did some google research and it does look like it is possible.

These guides might be helpful:

 

Can I Withdraw My Pension Before Turning 55? - Moneyfarm UK

BLOG.MONEYFARM.COM

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Can I take money out of my pension before I turn 55 and still work? Learn about pension release rules, taxation and how much can be withdrawn.

 

 

Is it possible to take my pension before the age of 55? - Best Catalogues

WWW.BESTCATALOGUES.CO.UK

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Many people asked if they could withdraw their pension before the age of 55. This article will help you understand the rules governing pension release...

 

 

[AndyOrch]

At a price......and risky

 

Quote

Can you take money out of your pension before 55 if it’s a private scheme? – Yes, you can. However, you’ll pay a penalty fee.

 

When you cash in pension before 55 (57 from 2028), you will get a 55% income tax bill from HMRC. Because of this, many pension providers will not accept your request. You can talk to a third party to see if they can help, but they could charge you a fee of up to 30%. So you might end up getting as little as 15% of your pension pot.

 

The other thing you have to be wary of when thinking of making a pension withdrawal before 55 is that many of the companies offering this service are not approved by the Financial Conduct Authority. You could be falling for one of the many pension scams.

 

[Jasonoughts]

HI Guys / Gals

 

It is possible using the SIPPS system which is regulated by the FCA.

 

Do not know to much information at the moment, but it is possible.

 

Been onto my cryto currency dealer today, and it is all above board.

 

You can transfer your personal pension to a SIPPS, and these dealers will do the rest. 

 

All the rage.

 

OBVIOUSLY, further research and double checking is required.....

 

Looks like SIPP or SIPPS is the way forward... My Cryto currency dealer has told me it is all legit....

[dx100uk]

well any crypto company just like any of the internet advertisers you've already found, most of which are not regulated by the authorities (iwonder why?) , will say that as they are making a bucket load of money out of you now,

 

Potentially in the future, as they now have your full pension pot, will state like they all do, when you legal reach age and actually try to receive the rest, 'well it doesn't quite work like that we did tell you this. sorry your pension pot is now only worth about 35% of what is was before you ever came to us.'

 

there are 10'000's of stories on the web of people that got their fingers burned but didnt realise this until years down the line when it was too late and your money has gone.

 

just because i had a 'debt' thats might be giving me a perceived issue now, i would never risk my future private pension pot just because i was impatient.

 

 

 

 

[honeybee13]

Is it worth taking out money before age 55 [if you aren't seriously ill] and paying 55% tax and up to 30% of the fund in provider charges?

 

HB

[Jasonoughts]

I have had £1000 already from my crypto dealer.  Open your mind and stop thinking it is a scam.

[honeybee13]

I hope you're one of the lucky ones, Jason. I read this earlier.

 

‘They couldn’t even scream any more. They were just sobbing’: the amateur investors ruined by the crypto crash | Cryptocurrencies | The Guardian

WWW.THEGUARDIAN.COM

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Fuelled by hype and hysteria, the market in bitcoin and other cryptocurrencies went from an obscure niche to a $3tn industry. Then the house of cards...

 

HB

[dx100uk]

2 hours ago, Jasonoughts said:

stop thinking it is a scam

 

where have we said it's a scam??

 

£1000 great , but be careful...now they have their mits on your your whole pension sum,

 

 

 

 

[BazzaS]

Hang on : On Sunday you are asking “can it be done?”, and on Tuesday evening you are saying “I’ve done it, got £1000 from my cryptocurrency dealer”, which seems an unfeasibly short timescale for any application to a PRA regulated firm…..

 

Meanwhile, respondents have been posting why it isn’t a good idea, and you are saying you’ve gone and done so.

 

So, either the dealer has provided funds ahead of the provision by the pension provider (which suggests the dealer is “dodgy” / not PRA regulated), or you applied before you asked “is it possible?”.

 

So, reader beware.

 

 

[Jasonoughts]

11 hours ago, BazzaS said:

Hang on : On Sunday you are asking “can it be done?”, and on Tuesday evening you are saying “I’ve done it, got £1000 from my cryptocurrency dealer”, which seems an unfeasibly short timescale for any application to a PRA regulated firm…..

 

Meanwhile, respondents have been posting why it isn’t a good idea, and you are saying you’ve gone and done so.

 

So, either the dealer has provided funds ahead of the provision by the pension provider (which suggests the dealer is “dodgy” / not PRA regulated), or you applied before you asked “is it possible?”.

 

So, reader beware.

 

 

Hang on Bazza,

 

Not here for an argument or silly comments.

 

reader beware???

 

SIPPS is the answer,  which i found on this website, so "it can be done"

 

yes READERS, i still have debts like the rest of us suffering these hard times.

 

READERS, i have money invested with these online traders that make you money online, I gambled £250 and it works.

 

Seems Bazza wants an Argument.

 

 

 

 

 

 

 

[honeybee13]

Hi Jason.

 

What I'm not clear about is where your Standard Life [very good company IMO] personal pension pot is now. You seemed to be implying that your crypto dealer had control of it, but maybe I misunderstood.

 

HB

[BazzaS]

No argument, just pointing out where your posts don’t seem to fit with reality: that you haven’t answered.

 

So, have you already withdrawn £1000 from your pension with Standard Life, asking about it on Sunday, with the transfer happening by Tuesday evening?, or did you start the process previously?

 

Also, what has it to do with your “crypto dealer” : if you need cash (rather than some “crypto investment”).

So, it still looks like it doesn’t add up, and nothing you have said dispels that impression yet.

[BazzaS]

So, red herring about the £1000 from pension, and looks like a shill promoting crypto (& especially crypto for pensions)

Remains: reader beware.

Cryptocurrency scam: Man swindled out of pension and life savings https://www.bbc.co.uk/news/uk-northern-ireland-61789747