# Should I take my pension early?



## Tintagel (8 Nov 2009)

Should a person aged in their late 50's now retired in a deferred defined benefits pension take their pension now or wait until age 65?  A lot of senior people have resigned from the same company and may well be drawing down their own pensions early. There is also the fact that a lot of staff will reach age 65 at about the same time?


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## Bronco Lane (11 Nov 2009)

Is there a mathematical formula or website that can calculate the amount of pension a person would receive if taking it early?


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## Don_08 (11 Nov 2009)

They may not be permitted to take benefits early - from my experience the majority of DB schemes are refusing consent to early retirements due to the current situation.  Firstly contact the administrator/ HR to see is it possible and if so how much would the reduction be - it could be quite penal.


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## Anfear (13 Nov 2009)

Also, consider the possible income tax scenarios, taking pension earlier versus later.


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## Grizzly (16 Nov 2009)

Anfear said:


> Also, consider the possible income tax scenarios, taking pension earlier versus later.


 
Are there tax implications if you take a pension when you are over 50 and if the scheme allows you to do so?


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## LDFerguson (16 Nov 2009)

The lump sum element of your pension will be tax-free and the balance will be assessable for Income Tax, along with whatever other income you have.


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## monagt (16 Nov 2009)

"The lump sum element of your pension will be tax-free and the balance will be assessable for Income Tax, along with whatever other income you have."

Under Current Leglisation


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## Grizzly (17 Nov 2009)

LDFerguson said:


> The lump sum element of your pension will be tax-free and the balance will be assessable for Income Tax, along with whatever other income you have.


 
Just to clarify. The balance i.e. the monthly pension income will be taxable?  If you don't have any other income and are outside the tax bracket then do you still have to pay tax on the pension income?


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## LDFerguson (17 Nov 2009)

Pension income is assessable for Income Tax but if you're below the exemption threshold and your pension income doesn't push you over the threshold, pension income will be tax-free.

As monagt so rightly points out above - "under current legislation".


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## runner (17 Nov 2009)

LDFerguson said:


> Pension income is assessable for Income Tax but if you're below the exemption threshold and your pension income doesn't push you over the threshold, pension income will be tax-free.
> 
> As monagt so rightly points out above - "under current legislation".



In relation to a relative who has been abroad for some years and now comig home and eligable for a small pension and no other direct income...
If the above applies, and you have been out of the tax loop for a number of years, do you still have to get and submit a tax free cert etc, or does it apply automatically and no tax deducted?


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## LDFerguson (17 Nov 2009)

You have to get a tax credits certificate from Revenue.  Otherwise, emergency tax will be applied.


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## Grizzly (17 Nov 2009)

Thanks for the info.


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