4) Alternatives To Early Retirement
There are some alternatives to retiring early, which could be worth exploring.
If you need a short term cash injection to see you through a difficult financial situtation and buy some time to find another full or part time job you can consider:
- Taking up to 25% of your pension savings as a tax free lump sum (age restrictions apply)
- Accessing a defined benefit pension (if you have one)
- Cashing in a ‘small pot’ – a pension which is under £10,000 in value.
- Buying certain types of annuity
Approaching things this way could mean you are able to continue to regularly contribute towards your pension fund, and maybe top it back up too thus reducing the long term impact when it comes to funding your future full retirement.