Saving money in your pension account has only one purpose: to give you a comfortable retirement.
As a worker, this is why you are encouraged to start saving for retirement early enough so that you can rely on a substantial amount of money from your pension fund assets
every month after you’ve retired.
The ideal age to start accessing the money in your pension account is 50.
But what happens when you absolutely must access the money in your retirement savings account (RSA) before you clock 50? What then do you do?
While it is ideal to wait till you are 50 before withdrawing money from your pension account, there are situations where it is absolutely necessary for you to take out your cash before you hit the age of 50.
So if you are reading this and you’re not 50 yet but you need to access the money you’ve saved up in your pension account, stay back and keep reading this post to know exactly what you should do.
So if you are reading this and you’re not 50 yet but you need to access the money you’ve saved up in your pension account, stay back and keep reading this post to know exactly what you should do.
Here is a list of things you need to know about withdrawing money from your pension account before clocking 50.
Consider your current capacity
To withdraw money before the age of 50 from your pension account, you need to evaluate your current capacity in terms of work.
This means your physical and mental capacity. Ask yourself the following questions and answer them:
Have you stopped working?
Why did you stop working?
Are you dealing with a medical condition that is badly affecting you and has made you unable to continue working?
After answering these questions, you will be able to present a solid case to your pension fund administrator (PFA) that will give you access to withdraw from your account while under 50 years of age.
Usually, you can immediately access your money if your answers look like these:
Yes, I’ve stopped working.
I stopped working because I could no longer continue due to my current condition.
I am dealing with a serious health condition that is affecting my mental and physical state and I can’t continue working.
Usually, you can immediately access your money if your answers look like these:
Yes, I’ve stopped working.
I stopped working because I could no longer continue due to my current condition.
I am dealing with a serious health condition that is affecting my mental and physical state and I can’t continue working.
Retire shortly before clocking 50
To get access to the money in your pension account while under 50, all you have to do is retire before 50 and wait for a period of four months.
If you are unable to get another job after four months, then you can immediately access your money.
If you’ve made additional/voluntary contributions
Another condition on which you can withdraw from your pension account before 50 is if you’ve made voluntary lump sum payments into the account.
This is why everyone is encouraged to save additional voluntary contributions in their pension account. You can withdraw your voluntary contributions at any time. You don’t have to wait until you are 50.
Oak Pensions Limited's voluntary contributions are managed by our experienced professionals and thus gain advantage from our well-known investment management expertise.
To know more about our voluntary contributions, read this post on 5 reasons why you should choose Oak Pensions as your PFA.
You can also call the Marketing Manager on 09087448661 or send an email to info@oakpensions.com.
To know more about our voluntary contributions, read this post on 5 reasons why you should choose Oak Pensions as your PFA.
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