March 26, 2012
You have to wait until age 55 years or more, before drawing any benefits from a registered pension fund, unless you are seriously ill or in a special occupation such as professional footballer. This is the law. But schemes are being marketed that claim to provide early access to pension savings.
For this to work you must authorise a transfer of funds from your existing occupational or private pension into a risky investment structure, which may be based overseas. This puts the value of your pension fund at risk, and can generate a tax charge of 55% of any cash withdrawn, plus 15% charge for the pension administrator. Don’t be taken in by schemes that look to good to be true.
CKLG Accountants are here to help.