cash in pension??

shazz5555

I have had a company pension for 21 months. I desperatly need money towards my divorse as I cannot get legal aid. Can I and should I cash it it. I am 48 and pay £120 per month which I cannot afford anyway

shazz5555

I have a pension which I have had for 21 months at the cost of £120 a month. Can I cash it in.?

McKneff

You cannot cash in a pension once you put the money in after a certain time, now i am not sure whether this is 12 months or 24 months. Someone will be along soon to let you know, I'm sure.

dunstonh

You cannot cash in a pension but it can be used in a divorce settlement. However, usually its to enhance the other partners settlement rather than to offset your payment.

McKneff

Hi dunston, i seem to remember a long time ago i joined a pension scheme and was made redundant some time later, cant remember whether i had paid just less than 1 year or just less than 2 but i was given the option of taking my funds back out again. (less tax of course) Does this still apply these days
thanks
annie

dunstonh

With final salary pensions there is a limited period where you can get your contributions back, minus the employers bit, NI and tax. Not with personal pensions though.

MikeJones_2

dunstonh wrote: »

With final salary pensions there is a limited period where you can get your contributions back, minus the employers bit, NI and tax. Not with personal pensions though.

Hi dunstonh,

With an occupational pension scheme the terms you refer to is 2 years (current legislation) - although the scheme can offer a preserved benefit if it chooses to do so (although in my experience the majority choose not to).

Hope that helps.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

hamstercheeks_2

no i'd get a loan rather than cash in my pension - that will be worth more once you are retired

dunstonh

MikeJones wrote: »

Hi dunstonh,

With an occupational pension scheme the terms you refer to is 2 years (current legislation) - although the scheme can offer a preserved benefit if it chooses to do so (although in my experience the majority choose not to).

Hope that helps.

Mike

I knew the timescale was 2 years. However, has there been any change to that to allow flexibility as I recall a case last year where the timescale was 6 months.

That is why I hedged my response with the phrase "limited period" rather than specifying an exact term.

MikeJones_2

Hi dunstonh,

dunstonh wrote: »

I knew the timescale was 2 years.

I assumed you knew, I just posted it for other viewers' reference for their convenience.

dunstonh wrote: »

However, has there been any change to that to allow flexibility as I recall a case last year where the timescale was 6 months.

I'm not aware of any. If I find out to the contrary I'll let you know (presume you're okay to reciprocate).

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.