Can i cash in my pension?

Hi all,wonder if someone can advise me please.I have a pension with Norwich union but stopped paying into it in a couple of years ago.It is just under £9,500 and wondered if i can cash it in.I cant see anyway i can afford to pay anything into it at the moment.
Thanks in advance.

Ben.
«134

Comments

  • dunstonh
    dunstonh Posts: 115,910
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    Nope. You cannot cash it in. Only if over 60 and all your pensions are less than 1% of the lifetime allowance can you access it as a lump sum (and then subject to a tax penalty. If over 50 (55 from 2010) you can get access to 25% although that also has consequences.
    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.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Amazing how many people seem to have been sold private pensions without being told they could not cash them in.
    Trying to keep it simple...;)
  • curlyfairy
    curlyfairy Posts: 143 Forumite
    Amazing,all that money sitting there and i need it but cant touch it,typical.Thanks for the replies.

    Ben.
  • Dithering_Dad
    Dithering_Dad Posts: 4,554
    Mortgage-free Glee!
    Forumite
    Amazing that people want to cash in their retirement savings and leave themselves on the poverty line when they're elderly.

    Brilliant that the pension rules prevents this happening until they're at least old enough to understand the repercussions.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
  • lisyloo
    lisyloo Posts: 29,560
    Name Dropper First Anniversary First Post
    Forumite
    Amazing,all that money sitting there and i need it but cant touch it,typical.

    Hi Ben,

    When you put money in a pension you get great tax relief from the government.
    Part of the "deal" is that this money is ring-fenced to look after you in old age.

    I'm sorry if you didn't understand that, but the only circumstances the money can be released are death and retirement (or at lesat reaching the specified age).
    There is also another clause if you are terminally ill but I don't think that applies here.
  • EdInvestor wrote: »
    Amazing how many people seem to have been sold private pensions without being told they could not cash them in.

    No its a general problem we used to get asked that at least once a fortnight if not weekly administering an occupational DC scheme. Maybe we ought to put a sticky at the top of the forum?
    I have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.
  • Dick_here
    Dick_here Posts: 1,605
    First Post First Anniversary Combo Breaker
    Forumite
    This thread is amazing.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • dunstonh
    dunstonh Posts: 115,910
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    The bit about selecting your retirement age (typically 65), it being called a pension (how much bigger a clue do you need) and the risk warnings in the documentation clearly stating commencement ages should be enough for people to know even if they are not told outright they cannot access the money before retirement.
    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.
  • Pobby
    Pobby Posts: 5,438 Forumite
    But I can understand the frustration all that can bring. I was in a tight spot some years ago, needing to pay my suppliers, just one of the seven pots my wife and I have would have helped out greatly. Mind you, glad I didn`t!!!!
  • Dithering_Dad
    Dithering_Dad Posts: 4,554
    Mortgage-free Glee!
    Forumite
    This thread is amazing.

    No. You're amazing.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.2K Banking & Borrowing
  • 249.8K Reduce Debt & Boost Income
  • 449.3K Spending & Discounts
  • 234.4K Work, Benefits & Business
  • 606.7K Mortgages, Homes & Bills
  • 172.7K Life & Family
  • 247.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards