Nowadays, people work very hard to earn and invest specifically in pension for their later stages of life. It is necessary that you should have complete details about the pension scheme and ingress to your investment. You need to be over 55 year of age to claim your pension. You can get as much money as you want from your pension without breaking any law. It is necessary that your age should be at least 55 to demand money from pension provider, legally.
These days, people are incontestably seeking that can I cash my pension in early? The answer to your question is ‘No’. You can’t demand money from your pension before the given age limit. If you are not 55 year old and trying to get money from your pension then you are breaking the rule and for that you will face serious plenty.
If you have received call or message regarding that you can withdraw money from your pension then that is scam. It is also known as ‘Pension Liberation Scam’ which people associate with Pension Liberation Day. In fact, you will have to pay huge amount of money as bill for such act. In some cases, people don’t left with anything after demanding money from their pension, earlier.
Here is point-by-point information for people those are asking can I cash my pension in early?
- Heavy taxes and fees (up to £10,000) – Pension schemes are not designed for early release and if you try to demand for 25% of your pension before 55 then you will have to pay hectic amount of money as taxes. It includes 55% of your total unauthorised amount. That is not all yet as there will be a plenty of 30% to the firm which is providing pension for your retirement.
- There are no loopholes in legal system – Most of the people those promise early pension release will try to convince you via phone, email and social media that there are loopholes in legal system and you can withdrawal money before 55 using tricks. There are no loopholes and if you try to demand pension before retirement then you can face serious plenty.
- There is 30 day reversal period – There is no chance that pension liberation firms will share this information that you can freeze payment before 30 days of application. It takes 30 day to process the application and release funds. You can’t reverse it after 30 days and have to pay taxman 55% share.
- Higher risk investment – Pension liberation firms will convince you to invest in schemes those will bring great rewards. These investment plans have very high risks and there is strong possibility that you won’t have anything at the end.
Hence, If you are getting phone calls, messages and email regarding early pension withdrawal then you should say ‘No’ without thinking twice. Such people are fraudsters those are trying to trick people so they invest their pension money in bogus arrangements. They get high amount of money as commission on each successful attempt. You should make sure that you have contacted your employer and pension provider firm for best advice before taking any further step!