Pension - cancel or keep?

djblack

Guys

Treat me gently here please... I really dont know what I am doing...or can do!

Ok, I opten out of SERPS and started a new "pension". I opted back into SERPS when the world advised me it was the right thing to do. I made no personal payments into the fund, then or now.

I would like to know what options I have re the fund.

Can I transfer the money to another pension fund I have?

Is there a way I can "cash in" the fund, and transfer the money to my mortgage? I assume I would pay tax on that?

If I could cash in the pension, that would leave me with a mortgage of circa £20k, which would be very nice!

Thanks in advance for the advice.

David

dunstonh

I opted back into SERPS when the world advised me it was the right thing to do.

Who advised you? Personally, I would still contract out if I had the chance. The reason many providers contracted people back in was not because it was right for them but because the contract that they were on may no longer be suitable and that many were sold incorrectly by tied agents and contracting back in reduced that liability.

Can I transfer the money to another pension fund I have?

If it accepts protected rights, then yes.

Is there a way I can "cash in" the fund, and transfer the money to my mortgage? I assume I would pay tax on that?

You cannot cash in a pension. Thats why it has tax advantages. Plus, why call it a pension if you can get access to it earlier?

djblack

Thanks for taking the time to reply - its much appreciated.

The SERPS "advice" was in a letter that went out from Standard Life... and I probably *foolishly* followed their advice....

So, thre is nothing I can do with the pension policy other than move it to another policy or wait until I retire?

David

firesidemaid

in short, nope.

you may be glad of it in donkeys years to come - it's amazing how time flies....

dunstonh

The SERPS "advice" was in a letter that went out from Standard Life... and I probably *foolishly* followed their advice....

SL sent them out where they originally sold it or where the investment fund you are in is low potential. Or you have got to the pivotal age (45 men, 40 women) where it is best to contract in.

The latter is not foolish. poor quality investment fund prevents you throwing good money after bad but the better option is to change the pension to one of better quality. They cannot offer that though.

So, thre is nothing I can do with the pension policy other than move it to another policy or wait until I retire?

Keep it, switch funds or transfer it are the options available to you. If you are aged over 50 (55 from 2010) you can access 25% of it (which has consequences) but nothing before then.