pension redemption?

chippy22
chippy22 Posts: 3 Newbie
in Pensions, annuities & retirement planning
:rolleyes: What are the costs of cashing your pension early?

How are the fees calculated?

can you get out what you've paid in?

Comments

  • Sue-UU
    Sue-UU Posts: 9,557 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Hi Chippy, as you've had no contenders to this one - and I'm afraid I don't know the answer either - how about popping into (or phoning) the Citizens Advice Bureau and putting the question to them. They're trained with all that sort of thing and will be able to answer you quickly (though you may have to wait a while for them to be free if you phone) and thoroughly.

    All the very best, Sue.
    Sealed Pot Challenge 001 My Totals = 08 = £163.95 09 = £315.78 10 = £518.80 11 = £481.87 12 = £694.53 13 = £1200.20! 14 = £881 15 = £839.21 16 = £870.48 17 = £871.52 18 = £800.00 19 = £851.022021=£820.26[/SizeGrand Totals of all members (2008 uncounted) 2009 = £32.154.32! 2010 = £37.581.47! 2011 = £42.474.34! 2012 = £49.759.46! 2013 = £50.642.78! 2014 = £61.367.88!! 2015 = £52.852.06! 2016 = £52, 002.40!! 2017 = £50,456.23!! 2018 = £47, 815.88! 2019 = £38.538.37!!!! :j
  • Retired_I.F.A.
    Retired_I.F.A. Posts: 863 Forumite
    chippy22 wrote: »
    :rolleyes: What are the costs of cashing your pension early?

    How are the fees calculated?

    can you get out what you've paid in?


    Which of my pension plans do you mean?

    What fees?

    Yes thankyou.

    Your going to have to be a bit more specific chippy ;)
  • Andy_L
    Andy_L Posts: 12,786 Forumite
    Name Dropper First Post First Anniversary
    You can't cash in a pension early, ie before the minimum legally allowed age (50, rising to 55) unless, IIRC you are diagnosed terminally ill.

    Taking a final salary pension before the scheme retirement age (usually 60-65) results in reductions defined by the scheme rules

    The earlier you take a money purchase pension the less it pays out as you've invested less & it has to pay out for longer. The exact amount depends on the state of the stock and annuity markets at the time
  • dunstonh
    dunstonh Posts: 116,318 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    how about popping into (or phoning) the Citizens Advice Bureau and putting the question to them. They're trained with all that sort of thing

    They are not trained for that sort of thing. They would breach FSA rules if they were to. Chances are they would tell you to use an IFA or give you the number of an IFA that they have on their contact list. I have been contacted a few times from the CAB do answer questions in a regulated area. Something like this is not generic though and would require research (assuming early commencement rather than termination which as Andy says is not possible).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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