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Cash In Pension Early...Under 50!
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# 1
Old 10-11-2007, 11:35 AM
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Join Date: Nov 2007
Posts: 1
Unhappy Cash In Pension Early...Under 50!

Hi there,
I lost my job back in July of this year as I was signed off with depression!
I have since not found work but I have 2 pensions.
Would it be possible to cash these in as I have no money?
Thank you for your time!
toxic is offline
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# 2
Old 10-11-2007, 1:05 PM
Fantastically Fervent MoneySaving Super Fan
Join Date: Feb 2006
Posts: 4,442

Not without paying ridiculous charges. The Pension needs to grow for a decent length of time as well to build enough to buy the annuity (or similar product) later on in life.

Also if you spend it in your 40s, what will you have saved in your 60 and 70s?
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# 3
Old 10-11-2007, 1:11 PM
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Join Date: May 2006
Posts: 2,242

Unless you can get ill-health retirement, then no, you can't cash it in.

You can't (ever) actually 'cash it in' anyway - what you can do on retirement age, or later, is take a cash free lump sum with part of it and get a pension with the rest.
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# 4
Old 13-11-2007, 10:25 PM
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Join Date: Feb 2005
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there is a way you can 'cash in' pensions but you have to be a minimum age of 60 and all of your pensions combined have to be below a certain (low) limit, doesnt help the OP but worth bearing in mind
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# 5
Old 24-02-2010, 10:48 AM
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Join Date: Apr 2009
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I've been trying to get my pension for over 6 months, after lots off calls to my pension company they said yes due to ill health i was able to have it early.
they were wating to hear from GMP? I used to work for the post office and the amount of time i have been off work i they would have retired me.

after loads of phone calls and being told all is ok and it was on the last course of action, its was going to the underwriters.

Today I get a letter telling me that I can't have it, and I could not retire untill i was 65 ? (This was an opt out pension by the way) i opted out in 1984

why when i called only last week was i told that it was with the underwriters and all was good, then tell me today I'd have to wait untill i was 65 ( if i live that long) to get it. yet i had been told 5 or more times that the medical and my doctors evedence was enough for it to be paid early.

after over 6 months of being told yes it will be paid not i am told it wont be untill i am 65? I pointed out that had i been with the post office still i would have been retired off.

6 months of phone calls and everyone saying yes it will be paid Now I have been given a slap in the face saying it won't be.

anyone know if there is a way of getting it paid out?
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# 6
Old 24-02-2010, 9:10 PM
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Join Date: Mar 2009
Location: Surrey
Posts: 352

Have you been granted a medical retirement by the scheme itself, or have you simply asked the scheme on your own initiative if you can take early retirement?

If you have asked to take early retirement, then if your pension with the post office has an element of GMP in it, they have to check if by giving you an early retirement now, that they can meet any obligations for your GMP at 65. YOur post sounds like by giving you early retirement now, they can't do this.

IF this is the case, it is legal, but isn't great if its taken them 6 months to tell you this news. I imagine they have had to confirm your GMP and get an actuary to calculate it, which would cause a delay but 6 months is quite long time.

Theres a good thread i read yesterday on GMP:

This explains what goes on here, and deals with a similar problem to what i think you may have.

If its a medical retirement, similar conditions may apply. It depends on the schemes rules for early retirement. But its not impossible to get medical retirement but be stopped by GMP, it depends on the Scheme RUles there.

I would add that ill health benefits differ in most scheme for those still working for the post office and those who don't. The reason they differ is if you work for them, they are your employer and you are leaving for reasons outside your control. Your health has cost you your post office job. If you have left, then as far as the employer is concerned your health isnt stopping you work for the post office, you took that decision to leave years earlier. you arent an employee now and may have another employer who is responsible. Hence the differing treatment.
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# 7
Old 13-01-2012, 12:22 AM
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Join Date: Jan 2012
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Hi people! I need some advice. I am nearly 42, and have had a pension with the Pru since I was 18, but I only ever made 2 or 3 payments in that time (moved away from my home town and had bigger things to deal with )- but the Pru keep sending me info about my pension, what there is of it! I now have 2 terminal illnesses, and last year found out I had a 3rd, and I have been signed off medically for a while (3 years). I'm useless with financial things, but my brother tells me (the boffin of the family!) that I can cash my pension in now, but it will really be a pittance. How and what do I say when I ring the Pru? Any help would be great, because whatever money there is, it will really come in handy! Thanks in advance )
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# 8
Old 13-01-2012, 12:26 AM
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Originally Posted by toxic View Post
Hi there,
I lost my job back in July of this year as I was signed off with depression!
I have since not found work but I have 2 pensions.
Would it be possible to cash these in as I have no money?
Thank you for your time!
Heve you applied for ESA (Employment Support Allowance)? This is a benefit you can claim when you are too sick to work.
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# 9
Old 13-01-2012, 7:55 AM
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Kingtwig, you'd be better to start your own thread. This one is old - and mixing your issues with the original poster's issues means that people will get the two of you mixed up (like seven-day-weekend did).

I believe that you can have your pensions paid to you in a lump sum if your life expectancy is less than twelve months. Give Pru a call, explain your situation, and if they say "no, you can't have the money" write down their reasons and then post back here (preferably in a new thread) and people will be able to tell you whether Pru's reasons are right.
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# 10
Old 29-06-2012, 1:24 PM
MoneySaving Newbie
Join Date: Jan 2012
Posts: 3

Thanks for the advice Anniselle. I hadn't realised anyone had replied to my post! ) I'll ring the Pru and see what they say, and then start a new thread, as you've suggested. Thanks again
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