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  #1  
Old 21-07-2010, 10:01 PM
kerryberry
 
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Default How to get pension payout early???

My husband has some money tied up in a pension fund that doesn't mature until he is 65. The problem is that he could really do with having this money now to invest in a new business venture as we are pretty broke! I know it's a bit vague but does anyone know if there's any way to cash it in or break the contract so to speak...??
Thanks
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  #2  
Old 22-07-2010, 07:31 AM
aristotle aristotle is offline
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You can't get the money out early as far as I know unless there are very exceptional circumstances. I think for example if someone had an illness where they cannot work.
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  #3  
Old 22-07-2010, 09:44 AM
LDFerguson LDFerguson is online now
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How old is your husband? Certain types of arrangement allow you to take early retirement from age 50.
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  #4  
Old 22-07-2010, 11:45 AM
kerryberry
 
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Thanks guys. Unfortunately he's only 42 so we'll have a while to wait then...!
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  #5  
Old 22-07-2010, 03:36 PM
droileen droileen is offline
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You must get the permission of the Revenue to gain early access to a pension fund - they will be able to advise you further on the possible acceptable scenarios etc.
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Old 29-07-2010, 02:08 PM
airgead07 airgead07 is offline
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LDFerguson is correct ,can only take early retirement and draw down the benefits from age 50. Must be for reasons of ill health is under 50.
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  #7  
Old 04-08-2010, 03:41 PM
CRESPO CRESPO is offline
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Assuming a person reached 50 and was entitled to cash in his pension as described by kerryberry to invest in a new business venture that means that that person is not actually retiring but continuing to work in his her new business. So are they still entitled to earn an income from the business in addition to drawing their pension entitlements ?
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  #8  
Old 04-08-2010, 10:55 PM
kerryberry
 
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Interesting question Crespo...
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  #9  
Old 04-08-2010, 11:19 PM
Homer Homer is offline
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Quote:
Originally Posted by CRESPO View Post
Assuming a person reached 50 and was entitled to cash in his pension as described by kerryberry to invest in a new business venture that means that that person is not actually retiring but continuing to work in his her new business. So are they still entitled to earn an income from the business in addition to drawing their pension entitlements ?
Unless you are in a profession where the Revenue allows an earlier retirement age than 60, you can only retire at 50 if your pension is through an occupational pension scheme and the rules of that scheme permit retirement at age 50.

If it's a defined benefit scheme, there's a strong likelihood that you won't be able to take early retirement because of solvency issues. Even if it's defined contribution, it is likely that you will only be able to take part of your pension as a tax free lump sum (depends on how much is in the fund, your salary and how much service you had with the employer).

Having said all that, if you are able to draw your lump sum at 50, there's nothing to stop you using that money to set up a business and keep working.
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  #10  
Old 05-08-2010, 10:52 AM
Markjbloggs Markjbloggs is offline
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Quote:
Originally Posted by Homer View Post
Unless you are in a profession where the Revenue allows an earlier retirement age than 60, you can only retire at 50 if your pension is through an occupational pension scheme and the rules of that scheme permit retirement at age 50.

If it's a defined benefit scheme, there's a strong likelihood that you won't be able to take early retirement because of solvency issues. Even if it's defined contribution, it is likely that you will only be able to take part of your pension as a tax free lump sum (depends on how much is in the fund, your salary and how much service you had with the employer).

Having said all that, if you are able to draw your lump sum at 50, there's nothing to stop you using that money to set up a business and keep working.
What are the other consequences of taking a pension early?
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  #11  
Old 10-08-2010, 10:15 PM
Homer Homer is offline
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Quote:
Originally Posted by Markjbloggs View Post
What are the other consequences of taking a pension early?
Assuming you are allowed to take early retirement, the main consequence is that it will tend to be somewhat less than you would have received if you had waited under normal retirement age. Also, if you are still working, you may end up paying a higher rate of tax on the pension than you would have paid if you had waited until NRA.
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