Withdrawing a pension early - advice needed

[MossyUK]

Hi,

I have a pension I started with a company about 6 years ago and never contributed too after i left - about 4 years ago. I just had a letter through the post saying I have £X amount in this fund and I want to withdraw it as it will help immensely in buying my first home.

I am aware there is an early withdrawal fee - a %age i believe, but I cant find anything online about this. For what its worth, its with Standard Life, and they only open 9-5 weekdays so i cant call to ask.

Any help appreciated - I know this isnt the smartest move in terms of my long term investments, but i have other ways and means of providing in later life so its not a massive concern currently.

Thanks

 

[singist]

Maybe the law has changed but it used to be that you could only transfer it to a new scheme .... you couldn't get your filthy little paws on it

If you can actually withdraw it, then do as you suggest and buy bricks and mortar; a much better investment.

EDIT: Law changed on 6/4/06 .... still cant see that you can get your hands on your fund though ... google for "pension changes april 06" or similar.

 

[Bes]

I used to work for Norwich Union on the pensions team:

You cannot surrender a pension early unless you are terminally ill or similar. There are a couple of exceptions to the above, but it's extremely unlikey you would fulfill the criteria to surrender. This law is applicable to about 99% of the schemes out there, and is partly because of the tax relief you receive on pension payments.

You are, however able to transfer to another scheme, you may incur Market Value Reductions/ Market Depreciation Discounts doing this (which would constitute to the fees you mentioned) but you definatley cannot just have the money.