How to Get My Personal Pension Before Retirement Age


A personal pension is what the United Kingdom calls its version of an individual retirement account or a company retirement account like a 401(k). In 2010, account holders would have to wait a little longer to access their accounts. The minimum age for withdrawing from the personal pension accounts raised from age 50 to 55, but you may be able to begin drawing on the funds if your health no longer allows you to work.

Get a physical examination. The only way you can begin drawing on your personal pension before age 55 is if you are unable to work for health reasons. To make this case, your doctor needs to certify that you are unable to work. Another option to access your pension early is if you have a serious illness that has left you with less than a year to live.

Contact your pension firm to see what options exist for your particular personal pension scheme. Not all schemes are the same and each have a specific set of restrictions. Taking your pension out earlier than the minimum age of 55 may cost you more money than it's worth. This is particularly problematic if you're sick or disabled.

Fill out your pension form to take retirement due to an inability to work because of health reasons. Have your doctor sign off on the forms and submit them to your pension firm.

Decide how you want to take your pension. You can have your pension fund invested in an annuity that will pay you income for life. You can take a quarter of your fund as a tax-free lump sum payout and put the rest in annuity or you can divide your fund so to use it gradually. With this method, you can take up to 25 percent of each segment as a tax-free withdrawal while the rest goes into annuity.

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