Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    Queenb
    Can I Withdraw Pension Money Now
    • #1
    • 13th Aug 08, 5:04 PM
    Can I Withdraw Pension Money Now 13th Aug 08 at 5:04 PM
    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
Page 1
    • simpywimpy
    • By simpywimpy 13th Aug 08, 5:07 PM
    • 1,954 Posts
    • 1,336 Thanks
    simpywimpy
    • #2
    • 13th Aug 08, 5:07 PM
    • #2
    • 13th Aug 08, 5:07 PM
    I think if you are over 50 you can in some instances
  • Queenb
    • #3
    • 13th Aug 08, 5:09 PM
    • #3
    • 13th Aug 08, 5:09 PM
    bum I am 36!!
  • EdInvestor
    • #4
    • 13th Aug 08, 5:09 PM
    • #4
    • 13th Aug 08, 5:09 PM
    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 ?
    Originally posted by Queenb

    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.
  • Queenb
    • #5
    • 13th Aug 08, 5:12 PM
    • #5
    • 13th Aug 08, 5:12 PM
    Oh well thats that then - I am stuffed!

    Makes me angry that the company who I hate has retained my money!
    • dunstonh
    • By dunstonh 13th Aug 08, 5:14 PM
    • 83,212 Posts
    • 48,271 Thanks
    dunstonh
    • #6
    • 13th Aug 08, 5:14 PM
    • #6
    • 13th Aug 08, 5:14 PM
    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 an Independent Financial Adviser (IFA). 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.
    • MrChips
    • By MrChips 13th Aug 08, 7:07 PM
    • 919 Posts
    • 349 Thanks
    MrChips
    • #7
    • 13th Aug 08, 7:07 PM
    • #7
    • 13th Aug 08, 7:07 PM
    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...
  • chesky369
    • #8
    • 13th Aug 08, 11:30 PM
    • #8
    • 13th Aug 08, 11:30 PM
    ......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.
    • SandC
    • By SandC 14th Aug 08, 9:26 AM
    • 3,722 Posts
    • 5,490 Thanks
    SandC
    • #9
    • 14th Aug 08, 9:26 AM
    • #9
    • 14th Aug 08, 9:26 AM
    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.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,500Posts Today

7,387Users online

Martin's Twitter