# Drawing a pension early?



## DampDog (Apr 16, 2011)

Anyone know anything about drawing a pension early? (I'm just turned 50)

Long story short. Health is not so good again and occupational health have just mentioned it may be worth looking into the possibility of retiring under "ill health"

Now I don't have a "Company" pension at all but I do have a modest personal pension. What's the easiest way to find out just ring up my pension provider and enquire. I actually have my pension in two parts. One is a frozem lump because my employer at the time switched providers and a current one with Scottish Life.


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## Avanti (Jan 17, 2006)

You will have to contact them, many won't release it until age 55 and you lose like 5% per year before the agreed maturity.
I'm not sure but I think some companies used to buy pensions, but obviously that is a 'con'


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## ChuckH (Nov 23, 2006)

I drew my one early 3 years ago.. If I had left it till today it would have been worth a fraction of what I currently get !!

At that time the lower age limit was 50.... Pensions have been a huge dissapointment for me !! The forecasts when I took it out and what it is actually worth are poles apart..

That is the gamble I suppose as in the current scheme of things pensions are not the place to be.


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## DampDog (Apr 16, 2011)

Thanks,

I intend on doing some ringing around this week. It isn't anything that I'd really thought about at all as I'm only 50. But occupational health mentioned it. (probably think 2 heart attacks how much longer can he last.. )

My pension is similar to yours, the predictions were probably 5 times what is in my "pot" not so much a pension now as a few extra quid a month.

I don't expect anything to come of it, but I would like to know just how much is in all my various little pots. If there's 80-100K all up I'd be surprised. Not enough for sure..


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## spursfan (Aug 4, 2009)

I have a retirement seminar coming up to see the lie of the land.
Cant see that i will be able to retire untill i am about 79 at the rate things are going.
It will be interesting though to find out figures and facts so that i have a rough idea of what will happen in the future.


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## ChuckH (Nov 23, 2006)

DampDog said:


> Thanks,
> 
> I intend on doing some ringing around this week. It isn't anything that I'd really thought about at all as I'm only 50. But occupational health mentioned it. (probably think 2 heart attacks how much longer can he last.. )
> 
> ...


Its not only about what you can draw but its about cutting outgoings if you are still paying in on a monthly basis like I was doing..

I drew mine at 52 and I'm sure at the time the earliest age I was allowed to draw would have been 50...

This age limit is/was set by the government and I remember being told that I only had a couple of months to decide whether or not to draw as new legislation meant the minimum or lower age limit was to be changed to 55 !!

But I was then told by a very decent person at the Pru to bail out fast as the amount I would get each month was about to drop radically if I chose to stay in...........

Needles to say I bailed out and its just as well I did as if I were to be bailing out today I would be massively worse off !!

Remember also HMRC will take 20% of any annuity.

Lump sums if applicable are tax free though ..

Good luck !!


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