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Mr. Gregory White
Mr. Gregory White, Teacher
Category: General
Satisfied Customers: 5240
Experience:  M.A., M.S. Education / Educational Administration
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Can you cash in a private personal pension

Resolved Question:

Can you cash in a private personal pension?
Submitted: 5 years ago.
Category: General
Expert:  Mr. Gregory White replied 5 years ago.
Usually you can only do so before the age of retirement by paying a yearly "penalty".

Its not a "penalty" to get less because you retire early.

its simple math that if you retire early your pension is paid for more years so all personal pension schemes will do an actuarial reduction for early retirement. 4-5 % per year is normal. For example, if you want to start drawing at 55 instead of 65, you will probably only receive 50% of your monthly amount since you have retired 10 years early.
Customer: replied 5 years ago.

I have two personal pensions; one I had years ago with a company I only worked at for 3 years and it's been in limbo since as no further contributions have been added. It's quite a small amount and I wondered if I could cash this in - I need a new boiler and looking for a way to fund. My main pension I've had for years. I'm 45 so won't be retiring for a while yet. All the info I have talks of transferring but nothing about cashing in.

Expert:  Mr. Gregory White replied 5 years ago.
Typically, by law, these traditional pensions are not able to be "cash in" like an IRA or 401k.
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