Q I am self-employed and have saved for my retirement by paying into a Personal Pension Plan – when can I take my tax free cash sum? M Holt, Ballymena

Keith Storey answers: If you have a Personal Pension, Stakeholder Pension or have a fund in a Group Personal Pension Plan, the minimum pensionable age is going to change on the April 6, 2010. From that date, the earliest that you will be able to access your pension benefits will be at age 55. Currently you can access pension benefits at age 50.

If you are aged 50 on April 5, 2010, you will be able to access your pension benefits. After this date you will be unable to access your pension benefits until you are age 55.

The pension benefits which you can take are a tax free cash sum (up to 25% of your pension fund) and a regular income which will be provided from the balance remaining in the fund.

A consequence of the economic downturn is that an increasing number of savers want to take their 25% tax free lump sum early to pay, for example for third level education or reduce existing debts, while they continue to work (leaving the balance of their fund invested until they retire) and contribute to their pension plan.

For many people, accessing pension benefits early is undesirable, because it may reduce the level of income their pension can provide when they eventually retire.

Taking retirement benefits from your pension fund is an important decision and it really requires at least one meeting with a financial advisor, who will be able to discuss various alternative options. Make sure your financial advisor is experienced in providing advice on the various options open to you and they can explain the benefits, and importantly the risks, associated with each option before you make firm decisions.