Why won’t my employer let me take my company pension early?

I want to take my company pension early but my employer won’t let me, why is this? Surely it’s my money?

Question asked by Richard Howden
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Answered by Neil Adams

Whilst HM Revenue & Customs (HMRC) has set the minimum age at which you can start taking retirement benefits at 55, some employers’ pension schemes set a higher minimum retirement age.

For example, your pension scheme rules may state benefits can only be taken at the scheme’s ‘Normal Retirement Age’, which could be 60 or 65, or that early retirement is at the discretion of the employer or trustees.

If your current scheme does not allow early retirement, you might want to consider transferring your benefits to an alternative arrangement that permits early retirement.

However, always seek pension advice if you are planning on doing this and are unsure, as you must be certain that you aren’t giving up valuable guarantees by transferring your pension elsewhere. You will also need to check whether or not any exit penalties apply if you leave your existing scheme.

early retirement
 
pension tax relief
 
employers' pension schemes
 
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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Victoria
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