Mike Freer, business development manager, BWCI, replies:
YES, this may be possible.
You may have several different pensions from
different jobs over the years, so look at the options available under each of them rather than just your current employer’s scheme.
Each scheme has its own rules, but it’s usually possible to take early retirement from the age of 50. However, your pension income will be lower the earlier you take it.
It is also possible to take part of your pension as a tax-free lump sum. The maximum amount permitted under the income tax law is 30%. This would be a way of providing a short-term source of additional funds. If you have any small pensions, which are worth no more than £19,000, you could cash that in completely, although it would be taxable.
Hopefully that gives you a few ideas to consider. If you are unsure what would be best in your circumstances, you should get advice from an independent financial adviser.
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