Why can’t I access money that I have earn’t before the age 55. For instance I’m 30 and I have a pension from an old job that is not my main pension. It has 1k in it, I could do with the money now but everywhere I look it says you can’t access it till your 55? It’s my money I don’t understand how they can keep it from me unless I pay some ridiculous early withdrawal tax of 50%?
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Pension funds are (depending on country etc) generally regulated and tax favored. The tax benefit offered is on condition that the funds have restrictions placed on their use and distribution (eg pensions for people above 55).
The withdrawal tax is, in a sense, simply saying that if someone wishes to use the funds prior to retirement, then the tax benefit is withdrawn and the person pays taxes on that sum. There are sometimes exceptions (hardship, disability etc) that allow the use of pension funds without the payment of the withdrawal tax but this has to be investigated by yourself.
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