Taking a pension before 55

For most people, there is no option to take your pension before 55. 

But there are some circumstances where you can take your pension early, before 55 – the two main conditions are if you in ill health and can no longer work, or if you have a  “protected retirement age“.

 

Taking a pension early

In the event of ill health, it is possible to take your pension early, from any age from most types of pension.

The illness:

  1. Must be permanent

  2. Must prevent you from working

  3. The test is often based on your ability to do your “occupation” 

  4. Does not have to be life threatening

It is extremely common for many pension providers to tell customers they cannot take their pension early, even if they are in ill health. We believe this is due to a lack of knowledge from staff who don’t know the rules. 

The process and benefits you get from your pension will depend on a number of things. It will depend on the type of scheme, and in the case of a defined benefit scheme it will also depend on the scheme rules.  See ill health pensions to find out more. 

Protected Retirement Age

A protected retirement age is an old rule where pension scheme’s would “protect” a retirement age, so even if when legislation changed to 55, the pension provider could still pay out before this. This is not particularly common anymore, but it is worth checking if your provider offers this. This would enable you to take pension benefits before age 55. 

This type of protection normally only applied to old work based schemes. 

If you are under 55 and are in ill health and would like to discuss your options, we are experts in this field and can help you. Contact us online now or on 01793 686393.