Could we cash in these pensions?
MsDemeanour
Posts: 14 Forumite
My husband and I both have pensions and are interested in whether we would be able to release any of the money, either in part or full.
1. Mine is a Standard Life Self Invested Personal Pension Scheme. It's from an old job so hasn't been contributed to since 2010. It has a current (and transferable) value of just under £21,000. I am 36.
2. My husband's is with Aviva and is an SPP1 Sterling Individual Pension Plan. Coincidentally, his is also from an old job and hasn't been contributed to since 2010; it also has a current and transferable value of just under £21,000! He is also 36.
I understand some new pension rules have recently come into effect, do we have any options?
1. Mine is a Standard Life Self Invested Personal Pension Scheme. It's from an old job so hasn't been contributed to since 2010. It has a current (and transferable) value of just under £21,000. I am 36.
2. My husband's is with Aviva and is an SPP1 Sterling Individual Pension Plan. Coincidentally, his is also from an old job and hasn't been contributed to since 2010; it also has a current and transferable value of just under £21,000! He is also 36.
I understand some new pension rules have recently come into effect, do we have any options?
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Comments
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I understand some new pension rules have recently come into effect, do we have any options?
No. you are not in the retirement age 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.0 -
They are pensions, you cannot cash them in. When you are 57 or so you will have options.0
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You should be thinking the complete opposite. Those are low values for your age and you should be putting more in.0
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Thanks for the replies.
Lokolo - there are lots of reasons why people might need money immediately - I was asking whether they could be cashed in, not what makes more financial sense in the long term.0 -
MsDemeanour wrote: »Lokolo - there are lots of reasons why people might need money immediately - I was asking whether they could be cashed in, not what makes more financial sense in the long term.
I doubt any of those reasons justify ransacking retirement savings, hopefully those are not your only pensions. You should be thankful that the rules prevent you from accessing that money, unless you've got a bounty on your head it would be a mistake to try and obtain the money. Also I will pre-emptively warn you not to try and use any sort of "pension unlocking" scheme.0 -
MsDemeanour wrote: »Thanks for the replies.
Lokolo - there are lots of reasons why people might need money immediately - I was asking whether they could be cashed in, not what makes more financial sense in the long term.
And where is the sticky when you need it????
A moot point as you cannot access the money. You are 20 years too young.
And yes, it is more important to think about your pensions, and why you are behind for your ages (ie the assumption of at least 35K at age 35).
In the mean time we can only assume you are in debt. So please head on over to the Debt Free Board where you can receive help on your actual options at your age, and help reducing outgoings.0 -
MsDemeanour wrote: »Thanks for the replies.
Lokolo - there are lots of reasons why people might need money immediately - I was asking whether they could be cashed in, not what makes more financial sense in the long term.
If you don't want to know what makes most financial sense, I'd suggest your in the wrong place.0 -
For goodness sake.
I didn't ask for a lecture on whether we had enough in our pensions, or a lecture on what we should do with our pensions, or assumptions being made that we're in debt.
I simply asked whether they could be cashed in and that has already been answered in the negative, thank you.
I didn't include our personal circumstances in my OP as I didn't feel that was relevant to my question. But how would you feel if you discovered that somebody desperately needed money to fund medical treatment abroad for example? Would you get off your high horses?0 -
If your life expectancy is less than one year, you could potentially access your pension as a serious ill health lump sum.
So including the full situation can be relevant of you want accurate replies.0 -
MsDemeanour wrote: »For goodness sake.
I didn't ask for a lecture on whether we had enough in our pensions, or a lecture on what we should do with our pensions, or assumptions being made that we're in debt.
I simply asked whether they could be cashed in and that has already been answered in the negative, thank you.
I didn't include our personal circumstances in my OP as I didn't feel that was relevant to my question. But how would you feel if you discovered that somebody desperately needed money to fund medical treatment abroad for example? Would you get off your high horses?
99% of people that try and do this sort of thing are doing it for reasons that can't be justified and are causing themselves serious long term financial harm, the problems caused by a lack of retirement provisions cannot be overstated. Personally I believe it's far better to err on the side of caution and assume the person is doing it for the wrong reasons and provide information/advice from that angle. If someone is trying to fund life saving treatment then they will mention that and the advice will change -- for example if someone is terminal (less than 1 year to live) they can access their pensions.
There was a topic (on this forum I think) a few months ago from someone that "needed" to withdraw their pension early and so they did so using pension liberation, a few years later HMRC caught on and they ended up in an even worse short term financial position... with no long term savings either. There's a topic called "Can I cash in my pension?" and quite a few people mention "needing" to cash in their pension to pay their bills now, what about when they retire?! Literal insanity.
You asked a question that can lead someone down a very dangerous path (even just considering taking money from a pension early indicates a lack of understanding about how important funding retirement is) and in my opinion it's very important to make sure people understand that. You weren't being lectured, I (and I assume the other respondents) wanted to help. Sorry if it came across as a lecture, but you need to understand the magnitude of having no retirement provisions
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