Cancelling an old pension

Legacy_user

Hi Guys n girls.

Just a quick one really, I have an old pension that I only paid into for a year about 3 years ago. So it has about £1200 in it. Can I cash this in early to help me further reduce my debt as I am now in my Companies pension scheme. Is this wise (im 28 and I realise I need to start upping my payments soon) but this would help me further reduce my outstanding credit and bring forward my debt free date a bit

I believe the pension was from Eagle Star, round about 2002.

Any info would help.

Many thanks

Stuart

dunstonh

Can I cash this in early to help me further reduce my debt as I am now in my Companies pension scheme.

No you cannot i'm afraid.

EdInvestor

Yet another person sold a pension without being advised about the strict rules on access to the money.

worried_and_confused

EdInvestor wrote:

Yet another person sold a pension without being advised about the strict rules on access to the money.

I don't see the OP stating this in their original post. Maybe they just changed their mind/made a mistake/didn't read the small print.


But the short answer is no, you can't access the money.

whiteflag_3

EdInvestor wrote:

Yet another person sold a pension without being advised about the strict rules on access to the money.

Yet another comment from Edinvestor with absolutely no evidence to back it up!

Stuart - Eagle Star pensions usually have decent fund links therefore you should look at making the most of what you have with them. If your job changes in the future you could maybe use it again in the future. So all not bad news.

dunstonh

I cant believe that comment Ed. It just goes to show what your agenda is here.

Cook_County

One very important point here is to ask yourself about charges.

If it is a stakeholder plan then the charges will be a maximum of 1%. If not the charges may be greater.

You may be able to save charges by consolidating with your company plan or transferring the money to a lower charging fund.

dunstonh

If it is a stakeholder plan then the charges will be a maximum of 1%. If not the charges may be greater.

Minor point....Stakeholders are now a maximum of 1.5% for first 10 years, then 1.0% thereafter.

EdInvestor

worried_and_confused wrote:

Maybe they just changed their mind/made a mistake/didn't read the small print.

So sorry, of course it must be the OP's fault.

IFAs and insurance salesman ALWAYS tell customers that they can't get any money out of a pension until they are over 50, and then they can only take 25% - and that the rest of the money must be given to the insurance company in return for a (taxed) income for life.

Don't they?

That's why so many people invest in pensions, isn't it?

They're such an attractive product after all :rolleyes:

dunstonh

Maybe the clue is in the name.

Debt_Free_Chick

EdInvestor wrote:

So sorry, of course it must be the OP's fault.

IFAs and insurance salesman ALWAYS tell customers that they can't get any money out of a pension until they are over 50, and then they can only take 25% - and that the rest of the money must be given to the insurance company in return for a (taxed) income for life.

Don't they?

That's why so many people invest in pensions, isn't it?

They're such an attractive product after all :rolleyes:

Doesn't the term "pension" as opposed to "savings" give a clue that it's intended to provide retirement income and not a nest-egg?