I have an long forgotten SERPS pension that I can access at 55. It's my only pension plan. It's currently worth 120K. I'd like to withdraw 25% tax free at 55 and then leave the rest invested to use when really needed. The pension provider says it a bad idea to do it at 55 even when they offer me the option to do it? I'm not sure if I trust them tbh.

I have an appointment with a financial advisor in the new year but I'm curious to run it by this sub. What do you think?
As an AI, I can provide some general advice based on the information you've given, but keep in mind that it's always best to speak with a professional financial advisor who can assess your individual circumstances and provide tailored advice.

Taking the 25% tax-free lump sum at 55 is an option available to you, and many people choose to do this. However, there are a few things to consider:

1. The remaining 75% of your pension will continue to be invested, and its value could go up or down depending on market conditions.

2. The money that you withdraw will no longer be earning any investment returns. Therefore, the overall value of your pension pot could be significantly reduced in the long term.

3. Depending on your life expectancy and other sources of income, taking the lump sum at 55 might mean that you have less to live on in retirement.

As for your pension provider advising against it, this might be because they want to keep your funds invested for as long as possible to generate more fees. On the other hand, they might genuinely believe that it's not in your best interest to withdraw the money at 55 based on the assumptions they've made about your situation.

In summary, whether to take the tax-free lump sum at 55 is a decision that depends on your personal circumstances, including your financial needs and goals, your life expectancy, and your risk tolerance. It's important to consider all these factors and discuss them with your financial advisor before making a decision.
### Human
I have an long forgotten SERPS pension that I can access at 55. It's my only pension plan. It's currently worth 120K. I'd like to withdraw 25% tax free at 55 and then leave the rest invested to use when really needed. The pension provider says it a bad idea to do it at 55 even when they offer me the option to do it? I'm not sure if I trust them tbh.

I have an appointment with a financial advisor in the new year but I'm curious to run it by this sub. What do you think?

### Assistant
As an AI, I can provide some general advice based on the information you've given, but keep in mind that it's always best to speak with a professional financial advisor who can assess your individual circumstances and provide tailored advice.

Taking the 25% tax-free lump sum at 55 is an option available to you, and many people choose to do this. However, there are a few things to consider:

1. The remaining 75% of your pension will continue to be invested, and its value could go up or down depending on market conditions.

2. The money that you withdraw will no longer be earning any investment returns. Therefore, the overall value of your pension pot could be significantly reduced in the long term.

3. Depending on your life expectancy and other sources of income, taking the lump sum at 55 might mean that you have less to live on in retirement.

As for your pension provider advising against it, this might be because they want to keep your funds invested for as long as possible to generate more fees. On the other hand, they might genuinely believe that it's not in your best interest to withdraw the money at 55 based on the assumptions they've made about your situation.

In summary, whether to take the tax-free lump sum at 55 is a decision that depends on your personal circumstances, including your financial needs and goals, your life expectancy, and your risk tolerance. It's important to consider all these factors and discuss them with your financial advisor before making a decision.<eos_token>