Stakeholder pension

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recovering_spendaholic
recovering_spendaholic Posts: 3,062 Forumite
in Pensions, annuities & retirement planning
I know nothing about pensions. I have an occupational pension which is fine (final salary local gov), but about 14 years ago I was persuaded to put £3600 into a Standard Life Stakeholder Pension, which, I understand, will pay me a pension of £120 a year! Under the just announced rules can I just cash it in? I am 56.
Jane

ENDIS. Employed, no disposable income or savings!

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  • Your_Hero
    Your_Hero Posts: 883 Forumite
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    recovering_spendaholic wrote: »
    I know nothing about pensions. I have an occupational pension which is fine (final salary local gov), but about 14 years ago I was persuaded to put £3600 into a Standard Life Stakeholder Pension, which, I understand, will pay me a pension of £120 a year! Under the just announced rules can I just cash it in? I am 56.
    Yes it's possible from next April, but why would you want to cash it in so soon? You will just spend it.

    Best to leave it invested in a tax-free environment until you need it when you retire and then cash it in.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • xylophone
    xylophone Posts: 44,427 Forumite
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    http://www.telegraph.co.uk/finance/personalfinance/pensions/10710606/Budget-2014-How-will-the-new-pensions-system-work.html

    Better to wait until next year?
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    I was persuaded to put £3600 into a Standard Life Stakeholder Pension, which, I understand, will pay me a pension of £120 a year!

    How do you know it will pay you £120 a year? The statements just make assumptions (often using the lowest form of annuity rate) and you dont need to take it that way. Plus, the assumptions are unlikely to be correct too.

    At the moment, it is sitting there tax free, outside of your estate and can be invested largely how you like. So, why take it out?
    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.
  • atush
    atush Posts: 18,726 Forumite
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    If you are working, and paying tax leave it there and take it when no longer working. Better yet, add more to it. Might keep you from retiring early with a smaller pension?
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