Cashing in small pension

[Raccaccoonie]

I've got about 2.5k in a small pension that I could do with. I'm 40 I know you get penalties but could with even 1.2k if I only get half. Is this possible?

Edited by Raccaccoonie on Saturday 13th May 12:51

[CharlesElliott]

In reality, you won't be able to do it, sorry.

[Raccaccoonie]

CharlesElliott said:

In reality, you won't be able to do it, sorry.

Reading online it advises you can but 50% penalty is this not correct?

[AdamV12V]

Have a read here..

https://www.pensionbee.com/pensions-explained/pens...

pension bee said:

If none of these circumstances apply, HMRC may view your early pension release as unauthorised, and you’ll be charged up to 55% tax on the amount you withdraw. Because of this it’s highly unlikely that a reputable pension provider will help you release your pension early, which means a third party will need to do it for you. They could charge you up to 30% to do so, leaving you with just 15% of your pension overall. Usually the firms that arrange early pension release for under 55’s aren’t authorised by the Financial Conduct Authority, which means you’ll have no protection if anything goes wrong.

That's the reason its a very bad idea. Maybe you could get a loan if you are desperate for £1200?

[Raccaccoonie]

AdamV12V said:

That's the reason its a very bad idea. Maybe you could get a loan if you are desperate for £1200?

yes I could get a loan, I'm not that desperate just i'll be dead before I ever get to pension age, just looking at options.

[anonymous-user]

You can draw an occupational/private pension from ten years before your retirement date, I believe. Snag is, the taxman is standing there holding out his hand, so why should you hand over a fair chunk of your pension savings?

I was daft enough to do this at age 55, I took my RAF pension and reduced my working hours, but ended up little better off due to the tax on my pension!

But I did enjoy the extra time sailing my boat......

[Car bon]

Raccaccoonie said:

yes I could get a loan, I'm not that desperate just i'll be dead before I ever get to pension age, just looking at options.

Depending on what that means..... you can access it early, without penalty, if you have certain health conditions, ie terminal ones

https://www.gov.uk/early-retirement-pension/person...

[CharlesElliott]

If you, unfortunately, have a terminal health condition then you may be able to access it. But under normal circumstances you can't because the pension provider won't allow it, and/or the penalities for doing so will make the pension effectively worthless.

[Raccaccoonie]

just to be clear not terminal, but life expectancy mid 50s, so just over a decade left. Just thinking really, would be nice to use it for a decent holiday.

[CharlesElliott]

Raccaccoonie said:

just to be clear not terminal, but life expectancy mid 50s, so just over a decade left. Just thinking really, would be nice to use it for a decent holiday.

Sorry to hear that, but the pension will not be a realistic option I'm afraid.

[Raccaccoonie]

CharlesElliott said:

Sorry to hear that, but the pension will not be a realistic option I'm afraid.

Just thought I would check.

[anonymous-user]

Raccaccoonie said:

just to be clear not terminal, but life expectancy mid 50s, so just over a decade left. Just thinking really, would be nice to use it for a decent holiday.

Not good news, I would do all the 'wrong' things and then stick two fingers up at the buggers when you reach your three score years and ten!

On a more practical note, I understand that a lot of credit card debt gets written off if a card holder dies early, so book your holiday on a card, then balance transfer, rinse and repeat?

[Jaguar steve]

JB99 said:

But I did enjoy the extra time sailing my boat......

I cashed in an old employers pension scheme to help buy mine. A miserable £80 a month extra for the rest of my days or another boat?

Tough call that one...