Hello all.arly. I believe that I heard

I presently have about 40k in my private pension in the uk and was wondering if it is possible to cash in early.

I believe that I heard some time ago that it is impossible to cash in early until you are of a pensionable age. I'm not sure if this is true and am seeking some advice.

Thanks slippery

It entirely depends on the rules of the scheme, which you should have, but if not you can write to the scheme administrators.,

Manyy modern pension schemes these days permit retirement quite early - some from age 50.

If it is a 'final salary' scheme (unlikely), then early retirement may involve penalties.

Otherwise, provided your scheme permits it, you should be able to take a pension penalty free, but bear in mind that the longer you leave it, the more it will be worth, and the more your ultimate pension will be.

Contact the pension administrators and ask for your options.

Hello all.arly. I believe that I heard

I presently have about 40k in my private pension in the uk and was wondering if it is possible to cash in early.

I believe that I heard some time ago that it is impossible to cash in early until you are of a pensionable age. I'm not sure if this is true and am seeking some advice.

Thanks slippery

40k GBP = 2.8 mil. baht - that's not going to last long.

Can't you wait, build up your PP to about 200k?

Hopefully by then you'll also get your UK state pension.

I would call the PP provider and ask them for the projected annuities? At age now...........age at 50.............age at 55 etc. See what you get first?

you can also take up to 25% of your pension fund as a cash lump sum.

Talk to an independent financial advisor before you withdraw your pension fund there are very like two heavy penalties to pay.

Penalty 1 - The Pension fund will almost certainly penalize you for making an early withdrawl

Penalty 2 - If you withdraw a pension fund before retirement you will not be allowed to withdraw the 'government's contribution', that is the part of your fund that is comprised of 'Tax Breaks'.

Under these penalties you might find that your available pension fund is a lot less than you thought.

I would also suggest that if your long term plan is to stay in Thailand and before you retire you are already thinking of drawing your PP fund then you are heading for a financial crisis later on.

If you don't have enough funds when you retire to meet the minimum income requirements for a retirement visa then you will have shot your chances of staying in Thailand by withdrawing your pension.

you can also take up to 25% of your pension fund as a cash lump sum.

You can only do this when you retire (start drawing pension)

And I would not bet on that being allowed for much longer, John Major suggested getting rid of that 'tax free perk' when he was chancellor, its only a matter of time before the government (of either ilk) rolls out the a policy of 'Spite and Envy' over fat cats with private pensions getting something that those who did not save for their retirement - and bingo, the tax free lump sum becomes a dead duck - rather than the sitting duck it already is.

Maybe there's a UK Pension forum online and you could get expert advice on there

The Chancelor changed the rules on Private Pensions last year, if you have a PP worth less than £15K it is known as a trivial amount and can be cashed in when you reach 60.You receive 25% tax

Used to be able to do this from 50, it may be 55 now due to some changes. You do not get the full amount,only up to the 25% lump sum and the rest has to be re-invested in an annuity or such like which will give you a yearly payment, based on the amount invested and type of scheme. Do agoogle search on early pension access and you will find loads of info and advice.

Maybe there's a UK Pension forum online and you could get expert advice on there

Not wishing any disrespect with your suggestion, but I do know a bit about pensions and the OP has had as pretty good advice right here on TV and it is difficult to see how another forum would add anything new.

I reiterate that the OP must contact the pension scheme administrators and they will give him all his options in writing. Once he has received a reply, he can then come back to this forum, or any other, with his options to hand, and ask for additional advice if necessary.

An alternative would be to consult with a UK IFA. (Independent financial advisor). IFA's are strictly regulated and must give him unbiased advice on his options.

thanks for all of your advice. I will look into matters and review in due course.

Thanks a million

Try this link

http://www.moneysavingexpert.com/

the website has an active forum and some one should be able to answer your question. Site very good for any UK money issues.

Cheers Phil