Pension Release Under 55
Pension release under 55 is not usually possible. However, you may be able to gain early access to your pension fund if you are too ill to work.
Pension release involves gaining early access to the cash locked into your pension fund before you retire. Under UK law this type of pension release is not possible under the age of 55. Once you reach 55 you may take up to 25% as a tax free lump sum and either use the rest to purchase an income or leave it invested until you feel it is the right time to take retirement.
It is important to consider that if you do take funds out of your pension scheme before you retire, you may be left with a significantly lower income in later years.
If you are too ill to work you may be eligible to take your pension early.
You may come across providers who offer 'pension release' under 55 - these will normally be pension loan schemes and should be approached with caution. A pension loan can involve unreliable investments, hidden penalties and charges.
For tailored impartial advice on your pension options, or to discuss whether pension release could be right for you speak to a member of an independent pension advice team and receive a free initial consultation.
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