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💰 Why can’t I withdraw my pension until I turn 55?
💰 Why can’t I withdraw my pension until I turn 55?
Lianna avatar
Written by Lianna
Updated over a week ago

The age limit helps safeguard your financial future and prevents early depletion. It’s a way to protect your future self into retirement! 🚀

The Logic Explained

Most of us will be entitled to a full State Pension, but that often isn’t enough to support more than our basic needs during our ✨ Golden Years ✨. It's a legal requirement in the UK for your employer to offer you a Workplace Pension (if you meet the requirements) to encourage retirement savings that will supplement your State Pension. These pensions are designed for your retirement years, ensuring you have enough money once you stop working.

You may also have noticed fixed-term savings accounts may offer better terms than instant access savings accounts because they lock in your money for a set period, allowing banks to offer higher interest rates. A similar principle applies to pensions. The government has a deal which means your pension provider can claim back the money you’ve paid in income tax if it goes straight into your pension. So instead of that money disappearing in a tax bill, it gets put in your pension for future you. They don’t offer these tax benefits on any old current account!

Please note: This article can't cover everyone's personal circumstances and shouldn't be taken as financial advice. 
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