Selling Pension

2

Comments

  • MACH67
    MACH67 Posts: 1 Newbie
    I have had a private pension for many years. I have been made redundant (nearly a year ago now) and have had no luck finding employment. My house could be at risk if I don't find a solution soon.

    Is there anyway I can access the pension funds as waiting till I'm 50 and homeless doesn't really appeal
  • dunstonh
    dunstonh Posts: 116,259 Forumite
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    Is there anyway I can access the pension funds as waiting till I'm 50 and homeless doesn't really appeal

    No. Sorry.
    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.
  • Gnd
    Gnd Posts: 20 Forumite
    Is there a limit to the amount you can put in if you have a non-contributary pension? I am concerned I am adding over the legal limit and want to stop if this is the case?
  • dunstonh
    dunstonh Posts: 116,259 Forumite
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    100% of your income (although there are limits to be aware of if you earn over £130k or your contributions in the year are getting into that range)
    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.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Name Dropper First Post First Anniversary
    Gnd, if it's a lot of money the main concern is checking that you're getting the best available deal, since best deals depend to some extent on how much money is involved. In particular paying a fee to an IFA can get a significantly better deal than some other approaches, like commission or some do it yourself options. Depends on just how much money is involved and where you want to invest.
  • a440dc
    a440dc Posts: 5 Forumite
    First Anniversary Combo Breaker
    I took my 25%, at 53yrs age, and have had an annual payment since.

    I have been told that the "Trivial" amount has now increased to £18,500, but this is still frustrating to me as it means I cannot access the balance of this small fund (currently £25k) which would be more useful to me now since I have been made redundant and need £20k to finish building my retirement property.

    I would happily take a reduction in fund value down to the allowed £18,500 in order to have the full amount now but even this is not permitted...

    It seems that it can't be sold and can't be withdrawn, as a lump....seems that, in the UK, we have no control over our money!!!
  • dunstonh
    dunstonh Posts: 116,259 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I took my 25%, at 53yrs age, and have had an annual payment since.

    Hopefully you didnt do that using an annuity. The rate would be poor.
    I have been told that the "Trivial" amount has now increased to £18,500, but this is still frustrating to me as it means I cannot access the balance of this small fund (currently £25k) which would be more useful to me now since I have been made redundant and need £20k to finish building my retirement property.

    its too late now for you anyway. Once you cystallise a pension you cannot exercise triviality later (theoretically possible in some cases but extremely rare).
    It seems that it can't be sold and can't be withdrawn, as a lump....seems that, in the UK, we have no control over our money!!!

    You have loads of control of your money. However, like any trust arrangement, if you place the money in trust you have to comply with the rules of the trust. Pensions are a master trust and the requirements are to provide an income in retirement. Not to utilise 15 or so years before hand for other purposes. If you have other requirements in retirement that a pension cannot meet then you dont use a pension.
    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.
  • a440dc
    a440dc Posts: 5 Forumite
    First Anniversary Combo Breaker
    Hi Dunstanh

    Thanks for the comments.

    Actually I was hoping that by taking an annual amount the total would decrease and eventually meet the "Trivial" amount which seems to be increasing at the rate of £500 per year.

    I was told that, at some time, I would be able to draw the whole balance if this ever occurred.....maybe, as with so many things financial, I was misinformed.

    I never chose to have this money locked in this way it was enforced by a company for whom I was working some years ago.
  • a440dc
    a440dc Posts: 5 Forumite
    First Anniversary Combo Breaker
    Forgot to say that the maximum annual allowance I am offered is £1800 gross (£1350.00 nett).
  • dunstonh
    dunstonh Posts: 116,259 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Actually I was hoping that by taking an annual amount the total would decrease and eventually meet the "Trivial" amount which seems to be increasing at the rate of £500 per year.

    Unfortunately, as you now appear to realise, that isnt possible. Triviality will no longer be option available to you as you have taken the benefits on the pension already.
    I was told that, at some time, I would be able to draw the whole balance if this ever occurred.....maybe, as with so many things financial, I was misinformed.

    Looks like it.
    I never chose to have this money locked in this way it was enforced by a company for whom I was working some years ago.

    They dont force you to put your own money into a pension if you dont want to. If they want to pay into a pension then of course that is "free money" and worth taking.

    Obviously there are many advantages but some disadvantages.
    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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