Can you take out a pension before 55 ?

[TinaAnglewood]

Is it possible and has anyone cashed in their pension before they were 55? If so we’re the financial penalties massive, like 50% or something daft?

I’m 52 and considering cashing in my meagre pension. I’ve worked minimum wage jobs my whole life with several years off as a lone parent of 2, so it’s barely anything at all. In fact sod it I don’t care if you know ; it’s about £15k

I can take it without financial penalties when I’m 55, but I’d like it earlier. I don’t know if that’s possible yet I haven’t asked them.

Health reasons, who knows how long I’ll live, incoming wrecking ball recession, ....I’d like to invest in something tangible and a guarantee non-depreciation investment. Life is short. I don’t want to transfer it to a better pension or anything financial, I just want to take it out and buy this tangible item with it, which is an investment in itself.

Were

I think the penalties are so immense it's not worth it but I am not an expert

Maybe ask MN to put this in Money matters?

Quick thing here

www.moneysavingexpert.com/savings/pension-liberation/

I understand your feelings. I'm 44, stopped paying in ages ago, nearly restarted this year and decided against it - too little control over the money.

I hope you find a way to sort things.

You cannot access your pension until age 55 unless there are exceptional circumstances like severe ill health (less than 12 months to live) x

There'll be a tax bill of 55% Ibwould not recommend doing it!

Even if you wait until aged 55, you’ll only be able to drawdown 25% with no penalty. The other 75% will be subjected to tax at the appropriate rate (that you didn’t pay when contributing - you’re no worse off but it’s shocking how little you’ll be left with) ... I did this in the summer and intend to BTL with my pension pot. Much better than the forecast monthly pension.

@56Beetle

Even if you wait until aged 55, you’ll only be able to drawdown 25% with no penalty. The other 75% will be subjected to tax at the appropriate rate (that you didn’t pay when contributing - you’re no worse off but it’s shocking how little you’ll be left with) ... I did this in the summer and intend to BTL with my pension pot. Much better than the forecast monthly pension.

The other way to look at this is "it's shocking how little it costs for a pension"