Implication of cashing in part of my pension I turn 50

G

GregMc

Registered User
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Hi Guys,
I turn 50 next year -I've two pensions an Equitable Life one that I stopped paying into and a Zurich Pension that I still pay into. I turn 50 next year - can I cash in my Equitable life Pension without any penalty ??
SG
 
If the Equitable Life pension is indeed an Occupational Pension Scheme (a.k.a. Company Pension) then you can only take early retirement from age 50 if you are no longer in the employment of the company and have no other connection with the company. If the Zurich Life pension is also an Occupational Pension Scheme and relates to the same employment, then you will need to retire it at the same time as the Equitable Life one.

When you draw your benefits, you will be entitled to draw part of the fund as a tax-free lump sum. The balance will provide you with a pension income which is taxable as income. The tax rate will be determined by how much income you have altogether.
 
Chances are, the Equitable Life pension is in a With Profits fund and there will be a Market Value Adjustment (MVA) if you cash it in early. You find with a lot of these older policies (Scots Prov ones too), the normal retirement age is 70 (so the brokers could maximise their commission).

You really need to provide me details as we're only guessing here.


Steven
www.bluewaterfp.ie
 
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