Surrendered pension problem! Can I restart an old pension?

benlawman

I took out a stakeholder pension in 1999 with a reputable pension provider but only contributed around £500 in total as I had left the company who arranged it for me in 2000. I contacted the pension provider this year (2009!) and they have told me that the pension had been surrendered due to lapsed payment; I hadn't contributed or even contacted them since 2000 so this is possible.

The reason I contacted them was because I was hoping to continue paying into it as I have no pension currently and am looking to start one. Their representative said there is nothing he can do and the money has gone. Is there anything I can do to retreive the money and continue using them (or another pension provider)?

dunstonh

I took out a stakeholder pension in 1999 with a reputable pension provider but only contributed around £500 in total as I had left the company who arranged it for me in 2000. I contacted the pension provider this year (2009!) and they have told me that the pension had been surrendered due to lapsed payment; I hadn't contributed or even contacted them since 2000 so this is possible.

I'm a bit confused with your terminology and its conflicting.

1 - If you surrender a plan, the proceeds are paid to you. It is not possible to surrender a pension plan.
2 - Stakeholder pensions didnt come in until 2001. So, you couldnt have taken one out in 1999.
3 - lapsing without value was possible on some pre 2001 plans. Charges used to be higher and front loaded. Typically the first 12-18 months payments went totally on charges and you didnt gain a value until the 2nd year and later. So, lapsing is possible.

The reason I contacted them was because I was hoping to continue paying into it as I have no pension currently

It sounds like an awful pension so why would you want to restart it?

Their representative said there is nothing he can do and the money has gone. Is there anything I can do to retreive the money and continue using them (or another pension provider)?

If it has lapsed without value then it is gone and you cant get the money back. You should also stop seeing insurance reps as that is the worst way to buy financial services products. It is the most expensive and often the products are poor value and have limited and poor quality investment options. That is already reflected by what occurred with your previous pension.

If you need advice, then use an IFA not an FA and if you think your monthly payments are going to be erratic then stick to a stakeholder pension.