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Can I Withdraw Pension Money Now
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# 1
Queenb
Old 13-08-2008, 5:04 PM
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Default Can I Withdraw Pension Money Now

Hi all

Sorry for my ignorance here, I am sure you will shake your head but I have a question.

Basically at the moment I am suspended from work on an allegation of gross misconduct, this has been going on for 10 weeks +.

Anyway my car has died, I have no money so I want to withdraw money I have been paying into my work pension for the past 8 years as I will be leaving the company and I dont want them to hold on to it and I need the money desperately.

I have asked someone in my company who deals with the pensions but I got quite a sharp response back saying that I cant have the money - she said all I can do is transfer money to new plan or leave it in the company pension.

Is this right ? I dont have my paperwork with me as its in my desk at work where I am not allowed to go !

Any advice would be greatly welcomed.

QB
x
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# 2
simpywimpy
Old 13-08-2008, 5:07 PM
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I think if you are over 50 you can in some instances
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# 3
Queenb
Old 13-08-2008, 5:09 PM
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bum I am 36!!
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# 4
EdInvestor
Old 13-08-2008, 5:09 PM
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Quote:
Originally Posted by Queenb View Post
I have asked someone in my company who deals with the pensions but I got quite a sharp response back saying that I cant have the money - she said all I can do is transfer money to new plan or leave it in the company pension.

Is this right ?

Yes, if you are under 50.

If over 50 you might be able to get 25% of the money out in cash, but the rest would have to provide an income.
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# 5
Queenb
Old 13-08-2008, 5:12 PM
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Oh well thats that then - I am stuffed!

Makes me angry that the company who I hate has retained my money!
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# 6
dunstonh
Old 13-08-2008, 5:14 PM
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Quote:
said all I can do is transfer money to new plan or leave it in the company pension.

Is this right ?
Yes. That is correct. The govt gives tax breaks to pensions to encourage people to tie the funds up until their retirement. Not to access early (even when you really want to).

You could transfer the pension if you are over 50 (probably at a big loss) and take upto 25% of the value as a lump sum (and reduce the tax benefits of the pension as well as reducing your future retirement income). However, if you are under 50 then its no go.
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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# 7
MrChips
Old 13-08-2008, 7:07 PM
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If your (alleged) "gross misconduct" means that you owe your employer money, they can in some circumstances take this out of your pension transfer value.
If I had a pound for every time I didn't play the lottery...
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# 8
chesky369
Old 13-08-2008, 11:30 PM
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......the company who I hate has retained my money.......
no, it hasn't; your money (plus anything contributed by the company) is now in a pension fund, not in the company.
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# 9
SandC
Old 14-08-2008, 9:26 AM
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The others are correct. There are very few circumstances where you can cash in funds from a pension plan before the age of 50. This is why it is a pension plan and not just a savings plan.

Although you are obviously having problems with the company you work for, don't forget that they (I assume) have been contributing money into the fund as well.

Hope things turn out okay for you, but they aren't withholding any money, the pension goes with you when/if you leave, either for transfer into another plan or to be held until retirement age.
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