# Can I cash in or withdraw funds from my pension?



## Manu1972

Hi,

I have run into financial difficulty and I am wondering can I withdraw funds from my pension and if so what penalties will I suffer?


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## LDFerguson

In general, you cannot withdraw monies from your pension until you retire, which can be at age 50 with certain types of scheme or 60 with others.  

If you leave an Occupational Pension Scheme ("Company Scheme") with less than two years' service you can sometimes get a refund of the value of your own contributions less tax.  

If you want to specify what type of pension plan you have (PRSA, Personal Pension, Occupational Pension Scheme, Buy Out Bond etc.) and what age you are, you might get a more specific answer.


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## Gloriosa

Liam

can I ask the same question with some more information, I had a pension with the company I worked for back in the 90's, I left them in 2000 and I made a decision to transfer into a Retirement bond with Scottish Provident (best advise at the time, but I'm not so sure now), the transfer value back then was c £11,000, SP sold out to Phoenix last year, I haven't rang them yet to ask, I want to be armed with a bit more information first!

I also have a Personal Pension and a PRSA with two other companies but I'm no longer contributing towards either as I just need to watch the pennies for the moment!

is there a chance I could cash in the Retirement Bond?

thanks
Gloriosa


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## LDFerguson

Gloriosa said:


> is there a chance I could cash in the Retirement Bond?


 
Only if you're aged 50 or over and subject to restrictions on how much can be taken as a single lump sum payment.


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## Gloriosa

thanks Liam, information much appreciated as always


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## Bedlam

There was an item in the Sunday Times a while back (June) Where it mentioned taking the tax free cash up to 2 years before actual retirement date. Not sure if I read it correctly and I am open to correction


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## LDFerguson

Didn't see the article you refer to, but there's been no change in the early retirement rules. 

You might be referring to the fact that you can now temporarily defer buying your annuity (pension) at retirement from an Occupational Pension Scheme, once you've taken your tax-free lump sum.

Liam D. Ferguson


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## Markjbloggs

I am looking for finance for a business start-up, and am approaching the big 50.  One of my pensions (Mercer is the manager of this) has an amount that would be ideal for my purposes.

My question is - Can I convert this to a buy-out bond and take it as a tax free lump sum once I get to 50?


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## LDFerguson

I'll assume for a moment that you weren't a shareholding director of your former employer.  If so, the maximum tax-free lump sum you can get on retirement (including early retirement) will be determined by your salary when you left the company and how many years you were in the scheme.  Mercer should be able to run this calculation for you.  Transferring to a Buy Out Bond won't increase your tax-free lump sum entitlement.  

In certain circumstances you _might_ be able to transfer to a PRSA and withdraw 25% of the fund at 50 as a tax-free lump sum.  This 25% of fund might or might not be greater than your tax-free lump sum entitlement from the scheme.


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