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
Are You Pension Happy?
Call us on 02084327334
I know how much my pension is worth
I know how much my pension costs
I have clear financial goals for my retirement

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.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

 
I’ve read that the new ‘pension freedoms’ have led to a rise in the number of pension transfers....
 
I’ve heard about final salary pensions and they seem to be the best pensions on the market. Could...
 
I’m a bit confused about the new pension drawdown rules. What’s the difference between flexi-access...
 
Could you explain to me what a temporary annuity is? I’m looking into buying an annuity for retirement...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Trevor Massey
22/01/2019

Excellent service from start to finish. Both Jack & Jake were both helpful and polite through the process. I would recommend Drewberry to family and friends.

Adriana Fouche
31/01/2019

Oliver was great at explaining things, with patience. He called back when he said he would, and spent a lot of time to make sure the policy meets my needs.

Robin Condliffe
12/02/2019

Victoria Slade has been consistently prompt, personable, efficient and a great communicator. It is the first time that we have had straightforward dealings with financial services since becoming qualified doctors 20 years ago. Well done!

We are rated 4.9/5 based on 2024 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
2024 Reviews
H CONDLIFFE
Overall Rating
Victoria Slade has been consistently prompt, personable, efficient and a greta communicator. It is the first time that we have had straightforward dealings with financial services since becoming qualified Drs 20 years ago. Well done!
K Szymkiewicz
Overall Rating
Rauri Taylor is Independent Protection Expert who you want to help you with any Pensions, Investments & Insurance. He helped me made right choice.
S Brocklehurst
Overall Rating
Professional service, Oliver seemed genuinely interested in getting the right product for me. I was given plenty of options and everything was described fully when required. I felt no pressure to purchase a product.
G Bigga
Overall Rating
Helpful, knowledgeable and efficient and able to find great prices. I would highly recommend
N Lawton
Overall Rating
Everything was very well organised. Sam took the time to explain all of the options very thoroughly so that I could choose the right policy.