You can only withdraw your pension after your 55th birthday. This will increase to your 57th birthday for those retiring after 6th April 2028. This age is the standard minimum set by most pension schemes, but it is advisable to confirm with your pension provider as it may vary depending on specific plan rules or legislative changes.
When withdrawing money from your pension, only the first 25% of the amount is tax-free. The remaining 75% is subject to income tax, which will be calculated based on your total income for the tax year. This tax-free allowance applies to most pension schemes, but it is advisable to consult with a financial advisor or tax professional to understand how these rules apply to your specific situation.
However, you may be able to withdraw your money earlier in the event of a severe illness or accident which would need to be thoroughly assessed. These exceptional circumstances should be discussed with your pension provider to understand the specific criteria and process involved.