Early pension access for health reasons.... non starter!

[simon the viking]

I was looking to change my MTB to a gravel bike for easier all year round commuting including wet weather. normally I'd save up for six months or so and drop 800 quid or so on a new bike, but yhe days when i can save a hundred a month have long gone with bills going up, again interest free deals are out the question as dont want to commit to any more non essential payments.

So asked the question to my pension company, could I access one fiftieth of my pot 18 months before my 55th birthday. firm NO.

I'm T2 diabetic and sepsis (twice) and exercise is very important to my disease control. if i didnt cyle a 300 miles a month and looked after myself (better than i used to hence the T2).. I could have severe complications including gangerene and blindness and have to retire through ill health in which case i could access the lot tax free at any age....

wrong isnt it! contacted my MP and she the rules are right!

to the pension company, offered to get doctors note to prove it would help and even a proforma invoice from a bike shop...

oh well in 18 months im accessing a tenth of it and getting a gravel and a DI2 roadie! (permissiion granted from Mrs V although not entierly required its my pension)

Thoughts please....in the words of reddit.... AITA (Am I The Ar*****e)

 

[jowwy]

What if everyone asked for an early lump sum from their pensions pot, i mean there’s a cut off age of 55. How early should we allow??? Why should they allow it, when they have already set the rules that you agreed to on sign up of said pension??

 

[Deleted member 26715]

TBH I like black & white rules, that way there cannot be any argument, in this case they are working against you, but at least you know, you want it 18 months, early, so they agree to that, but then the next person comes along & wants it 18 months before your 18 month, at what point do you stop moving the line?

If you REALLY want the bike, buy it on a credit card, then swap the balance over to another card offering free interest balance transfers, probably cost you an extra 3% over the term, if when you get to the end of the term if there is a balance outstanding move it to another card.

 

[simon the viking]

What if everyone asked for an early lump sum from their pensions pot, i mean there’s a cut off age of 55. How early should we allow??? Why should they allow it, when they have already set the rules that you agreed to on sign up of said pension??

I understand the rules i just think its odd, that i could not paid attention to my health ended up seriously disabled through complications.. had the lot of my pension early spent the lot and become a bigger burden on the NHS than i currently an and that would be fine by the current rules...
My Mp suggested approaching a charity for a grant for one... as a working man i dont want to misappropriate struggling charity funds... when it is rampant inflation has stopped me from buying how i normally would

 

[simon the viking]

TBH I like black & white rules, that way there cannot be any argument, in this case they are working against you, but at least you know, you want it 18 months, early, so they agree to that, but then the next person comes along & wants it 18 months before your 18 month, at what point do you stop moving the line?

If you REALLY want the bike, buy it on a credit card, then swap the balance over to another card offering free interest balance transfers, probably cost you an extra 3% over the term, if when you get to the end of the term if there is a balance outstanding move it to another card.

this is normally what i might do but with bills going up each month and dont want to commit to non essential outgoings

 

[ClichéGuevara]

As you've already got a bike, wouldn't the sensible option be to alter your regime on that one to stave off ill health?

 

[vickster]

Sell the mountain bike, buy a lower end second hand gravel bike (after all if it’s for all weather commuting you won’t want anything posh?). In 18 months you can have whatever you want

 

[jowwy]

I understand the rules i just think its odd, that i could not paid attention to my health ended up seriously disabled through complications.. had the lot of my pension early spent the lot and become a bigger burden on the NHS than i currently an and that would be fine by the current rules...
My Mp suggested approaching a charity for a grant for one... as a working man i dont want to misappropriate struggling charity funds... when it is rampant inflation has stopped me from buying how i normally would

But again, what if everyone didnt pay attention to their health?, what would happen then?

 

[Ming the Merciless]

Trying to justify changing pension rules because you want a new bike is an odd one.

 

[Brandane]

Why not go to your bank and explain the circumstances to them?
You would think that they would be quite happy to give you a personal loan to cover the cost of a bike (over the course of... e.g. 36 low monthly payments) safe in the knowledge that you would be paying it off when you receive your pension payment in 18 months time.

OK, this may well be a slightly expensive way to do it when you factor in admin fees, and probably an early repayment fee in lieu of interest; but if it's crucial to your health and wellbeing, that's something you cannot put a price on.

 

[Brandane]

I just did a loan application on my banking app.... a £1000 loan over 36 months has an APR of 6.5%, monthly payments of £30.56...

 

[vickster]

Cycle to work scheme?

 

[simon the viking]

the MTB whilst usable is worth a goldfish and a balloon as they say... and is heavy so puts me off in any weather less than perfect... so i dont knacker up 11 speed chain and cassette. so selling and buying a second hand gravel bike is not really not an option as money is tight at the moment. literally in black by pennies at end of the month... so no extra finacial liabilities.

But in answer to my own question it appears i am the ar******e!

 

[Slick]

I don't think so, but I've always disliked pensions because of their lack of flexibility and also my perception of a whole sector of individuals earning a decent living off the back of hard working individuals without having to do an awful lot for it, which is why I have always done my own thing for financial planning despite the supposed tax breaks. Obviously, most of that is for another discussion, but there are a number of other options to fund a new bike.

 

[Deleted member 26715]

But in answer to my own question it appears i am the ar******e!

Think that's being harsh, maybe just a petulant teenager