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I am 55 and considering taking my pension early to help through the crisis. What do I need to consider?

This is one of a series of questions posed by the FT writes Josephine Cumbo.

The FT writes in answer to the question above “Since lockdown began in March, a rising number of over-55s have tapped into their pension pots. Recent figures from HM Revenue & Customs showed 347,000 people in this age group withdrew cash from their pensions over the three months to September — a 6 per cent increase on the same period last year. During the same period, a record 314,000 workers lost their jobs.”

“Assuming that your pensions and Isas are invested rather than in cash, and that your pensions are not defined benefit company schemes, a key point to consider is whether these have recovered fully from market falls,” says Christine Ross, client director at Handelsbanken Wealth Management.”

Yes, but what if you do not have a choice? If at 55 you have no job, no income, it’s Hobsons Choice.  However, the majority of people at 55 will have a choice.  If you have a choice, it means you have thinking time.  That’s what you need to focus on…not action.

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