Multiple pensions

[fred123456]

Hi,

I have four pensions from four different jobs.

1. Aon 16years with company A and value of 100,000

2. 5 years with company B value 30000

3.Company C 4 years and value of 20k

4. Public sector pension and hopefully I will have 24 years service.

Questions:.

Is there anyway to access the first 3 as cash.


If not can you get 25 percent cash from each company pension separately.

I see some places saying you can access 25 percent at 50. If you do this. I am presuming you cannot access any more as cash when you turn 66.

Any thoughts are much appreciated.
Fergal

 

[LDFerguson]

I'll assume that schemes 1 to 3 are Defined Contribution Occupational Pension Schemes.

If you are over 50 then you can take early retirement from any or all of them, withdrawing 25% of the fund value as a tax-free lump sum. With the remaining 75%, you can draw it all out as cash now, but you'll pay tax and levies on it as if it were additional earned income. Or you can transfer the remaining 75% into an Approved Retirement Fund (ARF). You can withdraw from an ARF at will, again subject to taxation on withdrawals. From the year in which you turn 61, you must start withdrawing a minimum of 4% per year from an ARF or else you'll be taxed on a notional 4% withdrawal.

As a general rule I advise against people drawing down their pension funds before retirement, as they were put in place to fund your years when you're not earning. But your specific personal financial circumstances might involve something which makes access to the funds advisable. But tread carefully before you break open the piggy bank.

Liam
www.ferga.com