Warchest in pension fund and withdraw immediately at 55

[Eirikur]

Cash in your pension at 55? You may have to wait till 70 - Telegraph

It said access to your own money - self-invested personal pension or company scheme - while rightly being made much easier, would also be later. Five or 10 years below the state pension age was the initial suggestion.

The Treasury, just a few months ago, opted for a more electorally palatable five years, starting in 2028. From then, the private pension age will rise to 57.

Because from then your private pension age will rise with the state pension age, the following applies.

If you're aged age 36 to 44**, you get your money at age 58. For Generation Y(ish), those from 23 to 35, the magic number is 59. For anyone younger, it will be at least 60.

Looks like I will be 55 in time, unless the law changes as suggested in the Telegraph article to get rid of the loopholes like the one I'm thinking of to use in my OP

[ChimpMaster]

I have thought about doing the same thing, but in the end I decided it wasn't worth the risk. Once the money is in a pension, it isn't under your control any longer.

I would rather keep it in the company for now and take it out when possible and invest it myself. I would rather have that money under my control and to spend/invest in my 40s rather than wait until 58 or 59 or whatever age the government force into law. By the time the government finish raping pensions, I might not even live long enough to enjoy my own money and it might not have been worth the wait anyway with all of tax changes coming in.

[Fred Bloggs]

Looks like I will be 55 in time, unless the law changes as suggested in the Telegraph article to get rid of the loopholes like the one I'm thinking of to use in my OP

I think what you propose is sound, but for piece of mind, check out the rules on pension lump sum recycling.

[BrilloPad]

Looks like I will be 55 in time, unless the law changes as suggested in the Telegraph article to get rid of the loopholes like the one I'm thinking of to use in my OP

I can't see the rules changing that much. The government needs wrinklies to burn their pension pots to keep the Ponzi economy going.

What happens in a decade? Well who care, government will be out of power then.

[SueEllen]

I can't see the rules changing that much. The government needs wrinklies to burn their pension pots to keep the Ponzi economy going.

What happens in a decade? Well who care, government will be out of power then.

Not if they change the boundaries they won't.

[northernladuk]

I can't see the rules changing that much. The government needs wrinklies to burn their pension pots to keep the Ponzi economy going.

What happens in a decade? Well who care, UKIP will be in power then.

FTFY

[syrio]

Yes I believe it should be possible and also a good idea. Maximize your pension contributions immediately before retirement to avoid corporation tax and then take it out as your 25% tax free lump sum.

Be aware that further changes to the pension rules are expected soon, probably in the next budget. You may find that the contribution limit is reduced.

I think fears about the age at which you can access your pension being raised are unfounded, especially if you make the contribution a year or two before retirement.

[SueEllen]

Yes I believe it should be possible and also a good idea. Maximize your pension contributions immediately before retirement to avoid corporation tax and then take it out as your 25% tax free lump sum.

Be aware that further changes to the pension rules are expected soon, probably in the next budget. You may find that the contribution limit is reduced.

I think fears about the age at which you can access your pension being raised are unfounded, especially if you make the contribution a year or two before retirement.

So says someone with a fixed state pension age of 65.....

[Contreras]

[url=http://www.hmrc.gov.uk/tools/pension-allowance/]Technically you can put in more than £40k, but it will cost you!

It's effectively up to £80k for this current tax year (depending upon circumstances) ...

http://www.hl.co.uk/news/articles/extra-pension-tax-relief-available-now

[WordIsBond]

I think fears about the age at which you can access your pension being raised are unfounded, especially if you make the contribution a year or two before retirement.

So says someone with a fixed state pension age of 65.....

I concur with syrio here. They are not going to change the age at which someone can retire a year or two before they hit that age. These changes are always going to be made / announced 5-10 years before they take effect, so that people can plan accordingly. No government would tell someone planning to retire next year that all of a sudden they can't do so because the retirement age has been changed with immediate effect. That's guaranteed loss of power at the next election.