Can I Cash In My Army Pension?

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County_Mounty
County_Mounty Posts: 3 Newbie
in Pensions, annuities & retirement planning
I was in the army for 3 years between 1997 and 2000. Can I cash in the pension? Wouldn't be worth much but the money could probably be used better by sticking it in an ISA now to save towards deposit for a house.

If I can how do I go about doing this?
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  • neverletitgetyoudown
    neverletitgetyoudown Posts: 211 Forumite
    edited 10 February 2011 at 7:05PM
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    County_Mounty wrote: »
    I was in the army for 3 years between 1997 and 2000. Can I cash in the pension? Wouldn't be worth much but the money could probably be used better by sticking it in an ISA now to save towards deposit for a house.

    If I can how do I go about doing this?

    good question as i would like an answer for this one
    :money:
  • Cook_County
    Cook_County Posts: 3,085 Forumite
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    County_Mounty wrote: »
    I was in the army for 3 years between 1997 and 2000. Can I cash in the pension? Wouldn't be worth much but the money could probably be used better by sticking it in an ISA now to save towards deposit for a house.

    If I can how do I go about doing this?
    Yup - absolutely. Either you die in which case 100% of the money will be available ...or you wait until after 5 April and if you are over age 55 at that stage - and have other pension income of at least £20,000 a year - you can take out the whole lot, but subject to PAYE.
  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    You would think a question like that would be asked more often.
    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.
  • RichandJ
    RichandJ Posts: 1,087 Forumite
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    dunstonh wrote: »
    You would think a question like that would be asked more often.

    Don't see why, it's not as if many people want to do this.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    sounds like a no to me.
  • bendix
    bendix Posts: 5,499 Forumite
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    County_Mounty wrote: »
    I was in the army for 3 years between 1997 and 2000. Can I cash in the pension? Wouldn't be worth much but the money could probably be used better by sticking it in an ISA now to save towards deposit for a house.

    If I can how do I go about doing this?

    Yes, but there are strict guidelines to how you can use it. Sadly you can't use it for an ISA or for a house deposit. My understanding on this is a bit limited - dunstonh is the expert on this issue - but I think you can use it only for holidays, luxury appliances, and - with special dispensation - you can change it for tokens for Pizza Express.

    It's some sort of government initiative designed to stimulate the economy through spending.
  • hugheskevi
    hugheskevi Posts: 3,866 Forumite
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    Find a woman aged over 55 with no money who you can trust.

    Marry her, divorce her, share the pension, trivially commute the pension and bob's your uncle :D
  • RichandJ
    RichandJ Posts: 1,087 Forumite
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    hugheskevi wrote: »
    Find a woman aged over 55 with no money who you can trust.

    Marry her, divorce her, share the pension, trivially commute the pension and bob's your uncle :D

    That's creative if nothing else. Perhaps it could be an Internet dating spin off from Loughton Monkey's proposed sell your pension site. :)
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
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    RichandJ wrote: »
    That's creative if nothing else. Perhaps it could be an Internet dating spin off from Loughton Monkey's proposed sell your pension site. :)

    Yep. Still working on it.

    Meanwhile, though, I've discovered a great thing do do with pensions. While I was working, I had a few of these things. Spent a lot of spare time trying to sell them or cash them in.

    Now I'm not working, I've found the most wonderful thing. I found out that if you ask them nicely, they pay you some money every month. Honestly. Now I just sit back and watch two decent amounts just coming into my current account, and I don't have to do anything.

    I didn't ask for it, but one of them, would you believe, just raised what they pay me by 4.6%. And they have promised to do this until I die!

    Would it be a good idea to PM Dunstonh about this in case he doesn't know about it? Bendix might be interested too.....
  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    Would it be a good idea to PM Dunstonh about this in case he doesn't know about it? Bendix might be interested too.....

    LM, you are so gracious but lets be honest, we all know that you are really the expert on how to cash in your pension and I think they should really be PMing you. :)
    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.
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