- Is this a loan?
No. This is not a loan because the money is already yours; its simply a case of getting the money out of your pension.
- Am i selling my pension?
No. You would not be selling your pension; in fact the rules don’t allow you to. Again, this is simply a case of you taking money out of something that is already yours.
- Do i have to retire to get money out of my pension?
No. You can get money out of your pension and continue to work.
- So whats the catch?
The most obvious problem with taking any money out of your pension now is that it wont be avaliable for you at a later date. You therefore need to make sure you are making the right decision.
You should always think about whether you would be better off borrowing the money you want instead or, if you have other savings or investments should these be used rather than taking money from your pension.
If your considering taking money out of your pension early you need to be aware that it would only be suitable for a limited number of people and circumstances and it will almost certainly reduce your pension income in retirement.
- Whats the charge?
The charge is a fixed rate of 11%