Releasing money paid into a pension plan

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Q: I paid into a pension 5 years ago I have since been paying into another pension plan due to a career change. I was wondering if I could release the money i had paid into the original pension even if i have to pay a penalty?

A: You cannot cash a pension in early like an insurance policy. You can arrange to take the benefits under normal pension regulations from age 50; you can take a maximum tax free lump sum equal to 25% of the total fund value with the balance payable as a pension annuity for life. It is not possible to take the lump sum without taking the annuity at the same time.

Answered by:

Bob Riach. CertPFS
IFA
Riach Independent Financial Advisers