Can I Take My Deferred Pension At 55

So should i jump in and switch my pension to access my money.

Can i take my deferred pension at 55. Since april 2015 people aged 55 years and over have more freedom and choice about how to access. You can access your entire pension pot from the age of 55 and there s no limit to the amount you can withdraw. The earliest you can take your pension lump sum is age 55 but the state pension age is currently 65 for men and women. How much can i take out of my pension at 55.

So you could still have a decade of work before you fully retire. Most lgps can be accessed from the age of 55 through the process of switching to a private pension first. Previously pension savers were allowed to take up to 25 of their funds as a tax free lump sum. It s not normally before 55.

This is most commonly done by buying an annuity which guarantees a regular income for the rest of the holder s life. Different schemes have different rules so check with your scheme administrators. You can take it from 55 up until 75 though if you have an active pension you would need to leave your current post to take it unless you take flexible retirement see information on the website about this. The rest of the money had to be used to generate an income in retirement.

You can take up to 25 of the money built up in your pension as a tax free lump sum. You could take an early lump sum to top up your pension or pay down some debts and continue to work. 25 is tax free anything after that is taxed at your marginal rate. Defined contribution dc pensions build up an individual fund or pot of pension savings.

You do not have to take your deferred pension benefit at your normal pension age you can take it at any time between the ages of 55 and 75. Be cautious of anybody that tells you they can help you access your cash before the age of 55 unless you have an illness or belong to a certain type of scheme this is usually pensions liberation and is often fraud. You can usually open your pension pot at age 55 and take a tax free cash sum from your pension. Contact your pension provider if you re not sure when you can take your pension.