Can I "cash-in" my personal pension somehow ?

A question about : Can I "cash-in" my personal pension somehow ?

I know that the general rule is that money in a pension is locked in there until you retire, although you're free to transfer it to another pension.

I really regret having funded my pension so much and would like to get the current transfer value out in cash to manage myself. Considering that the contributions made into it were tax-free, I fully expect that I'd have to take a tax hit when I cash out (if it's even possible) but I'm prepared to accept that. I'd basically be saying I changed my mind and wished I'd not made any contributions into it in the first place.

Is there any way I can do anything with that money that's locked in there, other than transfer it to some other pension? This question is related to my other question I posted about the retirement law changing from 50 to 55, hence my plans getting screwed up somewhat.

Best answers:

• it's not a general rule it's law. the only way to get at it now and then only 25% tfc and an income from the rest is if you were in an employment where the retiement age was far younger ie footballer, jockey etc or you can if you are terminally ill.
  if you merely want better choices of investment speak to an ifa and possibly transfer it to a sipp or a pp with bigger fund choices and free switching between them.
• That depends on the rules of the scheme. Taking 5% off per year of early retirement isn't unknown though, e.g. retiring at 55 you'd only get 50% of what you'd get at 65. Of course, when you retire, retirement age will be 66 at least.
• I've been thinking about asking Martin to start a new revolution - no doubt with the blessings of his Money Savers - to challenge existing pension withdrawal laws (vis a vis credit crunch, potential stagflation, future inflation). What do you think readers?
• Totally agree ED...slightly pompous post from dark pariah
• ISA's may not survive, the whole concept of tax free saving other than pensions is a fairly new thing and should be considered as a tempory idea instigated by politicans out for a vote winner.
  The pension tax exemps status however has been with us for many many decades and there is not one political party or politician that is not in favour of retaining said status.
  For many currently a stocks and shares ISA can be built up and still be put into a pension but only since the laws passed in '06. No doubt in the future they will change again perhaps back to a maximum contribution far lower than now and without carry back.
  The odds are way way more in favour that come retirement in 10 20 30 years from now the pension route will have provided far more.
• ISAs and PEPs have been around for more than 20 years now, are popular, and the Govt has committed to keeping them for the long term.
  The fact is that a pension is not really affordable for many young people because it is so expensive to buy a home. They are also unattractive because of the annuity problem.Hence the rush into buy to let as an alternative retirement investment.
  Pensions have their place but in future they are likely to be less important in the overall scheme of asset accumulation IMHO.
• IMHO That's a first eh Ed?
  Does this sudden humility mean we can one day see you posting a "Sorry, I got it wrong." somewhere? ;D
• I don't see why the pension withdrawal law should be changed, simply because some people don't understand what a pension is meant to be. If you want to be able access your money, start a saving scheme.
  And yes, I'm probably being pompous too.
• [quote=chesky369;11368987]I don't see why the pension withdrawal law should be changed, simply because some people don't understand what a pension is meant to be. If you want to be able access your money, start a saving scheme.[quote]
  The options available now make rational savings and investment choices possible. No problem with that.
  But up until the late 80s that wasn't the case. There were no PEPS or ISAs. Company pensions were often compulsory - a condition of employment. Some people were forced to save, others weren't.
  The advent of private pensions saw a large amount of misselling - and it looks pretty clear even now that many people still aren't being told at the point of sale that once money gets put into a pension, it can't be taken it out.
  Thus I wouldn't hold my breath waiting for a fall in complaints about money being trapped in pensions - especially when you look at what some of the insurance companies have done with the money over the years.... :rolleyes: