Can I cash in my pension?

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  • dunstonh
    dunstonh Posts: 115,907
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    It is final once and for all. No more one post wonders saying you can do it....

    The High Court has ruled that pension loans prior to age 55 to access funds are illegal.

    http://www.moneymarketing.co.uk/pensions/high-court-rules-unlocking-schemes-contravene-pensions-law/1043412.article
    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
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    In the UK. :) Undoubtedly scammers will try non-UK claims to attract their victims, as they already have. You too can have your whole pension pot paid into a Spanish property development company to get 25% of the money out now and then see the final value once you reach 55, less fees. Well, whatever the bankrupt property company leaves you...
  • Zelazny
    Zelazny Posts: 387
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    Just to reinforce what people have been saying here:

    http://www.moneymarketing.co.uk/pensions/high-court-rules-unlocking-schemes-contravene-pensions-law/1043412.article
    The High Court has ruled that arrangements which allow people to access their pension fund before reaching age 55 through loans are illegal.
  • Zelazny wrote: »

    You didn't look very far because exactly the same link was posted 2 posts above yours by Dunstonh.
    Thinking critically since 1996....
  • Zelazny
    Zelazny Posts: 387
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    You didn't look very far because exactly the same link was posted 2 posts above yours by Dunstonh.

    Bah! That'll teach me for not paying more attention. I got linked to the article today, and assumed it was new :S
  • stripey66
    stripey66 Posts: 1 Newbie
    edited 30 December 2011 at 11:10AM
    Hi,
    I have not paid in to any of my pensions for the last 8yrs due to ill health(not working)
    The Choices private pension is worth about £55,000 & the Merchanet Navy pension is worth about £4,000 & my retirement age is 9yrs time aged 60
    Has anyone got any idea what I should do ?
    Can I transfer pensions into one
    cash in & buy a annuty now

    I'm new to forum, so please excuse my mistakes if I make any
  • jem16
    jem16 Posts: 19,393
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    stripey66 wrote: »
    Merchanet Navy pension is worth about £4,000 & my retirement age is 9yrs time aged 60

    Can you clarify what kind of pension scheme this is? Is it final salary?
    Can I transfer pensions into one
    cash in & buy a annuty now

    I'm assuming you are aged 51 from what you say above. The answer to taking them is no as you are not 55. If the Merchant Navy pension is a final salary pension it would not be a good idea to transfer it.
  • gbhxu
    gbhxu Posts: 323
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    Does the merger of 2 companies void a pensions contract?

    I took out a pension with Norwich Union before 1997. Norwich Union became a PLC in 1997 and then in 2000 merged with Commercial Union to form CGNU now renamed Aviva.

    Surely any comtract I have is with a company that does not exist and should allow me to cash my pension in?
  • jem16
    jem16 Posts: 19,393
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    gbhxu wrote: »
    Does the merger of 2 companies void a pensions contract?

    No.
    Surely any comtract I have is with a company that does not exist and should allow me to cash my pension in?

    Pensions rules are set by HMG. You cannet access a pension before age 55 except in special circumstances and this isn't one of them.
  • jamesd
    jamesd Posts: 26,103
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    Neither the contract nor your pension pot vanishes when pension companies merge. You'll find that all relevant contracts include a term about assigning rights and responsibilities and even if they don't, a company takeover automatically causes such a transfer.
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