Clueless About Pensions

rusty-london

I have just recently remembered that I had a company pension from my first job which I was basically advised by the salesman to take out as I didn't have a pension (I was 16 or 17 at the time) so I took it out.

I stopped paying into the pension when I left the company about 7 years ago and have not made any contributions since then.

What options do I have with the pension?
As far as I'm aware it's not worth more than a few hunderd pounds and I can't transfer it into my current pension.

Is there any way I can cash in the pension or is it just dead money from now until I retire in about 30 years time?

On the last pension statement I had there was a section saying that there is extra money going in each year by way of a National Insurance Rebate and Tax Relief on Employee's share. Is this anything to worry about?

dunstonh

What options do I have with the pension?

leave it where it is or transfer it.

s there any way I can cash in the pension or is it just dead money from now until I retire in about 30 years time?

You cannot cash it in. However, it sholdnt be dead money either.

n the last pension statement I had there was a section saying that there is extra money going in each year by way of a National Insurance Rebate and Tax Relief on Employee's share. Is this anything to worry about?

That means you are contracted out of Serps/Second state pension. At least on paper you are. However, it would depend on your current pension as to whether you are in reality or not (for example a final salary scheme contracted out will supersede a personal pension contracted out. The personal pension may say you are contracted out but isnt actually getting any of the rebates).

Why cant you transfer the pension into your current pension?

rusty-london

I'm currently in the NHS pension and as far as I'm aware they won't let me transfer other pensions into it.
I'm finding it very difficult to contact anyone with regards the NHS pension to check up on it. Most of the other staff at work don't really know anything about the system either!

dunstonh

I'm currently in the NHS pension and as far as I'm aware they won't let me transfer other pensions into it.

Its been a while since I looked at a transfer into the NHS scheme but I think they dont take protected rights transfers.

Most of the other staff at work don't really know anything about the system either!

Probably not a good idea to speak to staff members. Most workplaces have staff members with some very weird ideas about pensions and the misinformation given out is sometimes highly damaging. The pension scheme administrators could give you more information. The simple question to them would be "do you accept transfers in from personal pensions that contain protected rights?"