Dear Reader,
You future pensioners are quite a funny bunch if I am being honest. I get a wide variety of questions about what you can do with your money. There is a vast gamut of things you seem to want to do with it from getting it in your bank accounts now to investing in a mate's bouncy castle business.
One of the key questions I get asked a lot is 'Can I get my money before I reach retirement age?' I thought I should write something about this to try and clear up the situation.
On the 6th April 2010 the normal minimum pension age rose from 50 to 55 meaning that most pensioners legally cannot get access to their money before that age.
There are 3 ways this can be taken early.
1/ If you are critically ill and have less than a year to live then you will under common practice be allowed access to all of your money in your pension tax free as a lump sum. Sadly Manflu has not been listed yet as a reason to allow access to your money. You will need a doctor to diagnose your condition as well as saying 'I googled it' probably wont qualify to the pension company.
2/ You were a professional footballer
I am being a bit ironic here. Some dangerous professions like sportsmen/women allow for retirement to be taken early as part of the structure of the scheme. There are very few 55 year old footballers out there that I know of. The authorities recognise that the working life of such jobs is a lot shorter and therefore retirement can start sooner.
Here is the list from the government page
Given I think I can dance like John Travolta after a few sherries I think I am in with a chance here.
Additionally Armed forces and police can qualify.
3/ Your pension was set up before April 2006 allowing you to retire early (from age 50) - check the rules of yours!
If you are interested in finding out whether you can qualify for early pension status I would suggest you ask your pension companies or your ex or current employers. There are companies out there offering to get your money early but to me they look a bit dodgy. The government rules are very strict for a reason.
Here is a link to the government web page if you like reading double dutch
https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm062220
Alternatively you could simply take up being a trapeze artist in a circus at the weekends and then hey presto you can retire!
Best
Don