I have been made redundant, should I take my pension?

I’ve been made redundant and don’t have any unemployment insurance so I wanted to know if I can take my pension. I’m trying to find another job but I’m not sure how long that will take and my savings are running out.

Question asked by Scott Laver
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Answered by Tom Conner

If you are aged 55 or over and your pension arrangement is a defined contribution plan, you are usually allowed to take your pension even if you’re planning on finding a new job.

However, think very carefully before doing this, as taking your pension benefits early will reduce the retirement income you have available when you retire. It could also land you with an unexpected tax bill if you take out a large lump sum.

You may want to leave your pension in the scheme and take your benefits when you retire. Alternatively, when you get a new job, you might want to consider transferring your pension into your new employer’s scheme if you are allowed to do so. However, there may be charges involved if you do this.

Before deciding what to do with your pension, it’s a good idea to seek pension advice to help you decide the best option to suit your individual circumstances.

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This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
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