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Pensions: what happens if I access mine early?

Changes introduced from 6 April 2015 allow people to access their pension savings more freely and easily than before. We've produced a free booklet which explains how things work. If you'd like a copy, please get in touch by using the contact form on this website.

Our free guide

  • Helps you understand the tax treatment of the options available within the new, more flexible, regime.
  • Relies on our current understanding of the Taxation of Pensions Act 2014, and the Pension Schemes Act 2015.
  • Doesn’t cover every small detail, as the rules are complex–it is a broad guide only.
  • Isn’t able to cover more complicated arrangements like taking money out of a pension and then putting it back into another scheme (sometimes called ‘tax free cash recycling’). If your plans include these complications, you will need to take professional advice, and will probably have to pay for it.
  • Is for people on relatively low incomes with smaller pension savings–those who have an income of £20,000 a year or less.

Key points

  • Pension flexibility came in from 6 April 2015
  • If you are over 55 and have a ‘defined contribution’ or ‘money purchase’ pension, your pension provider might allow you to take what you like, when you like from your pension
  • Resale of existing annuities deferred until at least April 2017
  • ‘Defined benefit’ or ‘final salary’ pensions will still have stricter rules
  • There is no rush!