Can you cash in a pension?

sylar18

I have a pension from a previous company which I paid in around £4k, plus my ex employer paid in around the same. When I moved jobs, the pension was non-transferrable so I just left it.

So, my question is, can I "cash in" the pension now (I'm 31). If I can, are there any penalties (i.e. do I forego the company contributions)? Would it count against me in the future in any way (aside from not having the pension when I retire of course). I may not necessarily need to cash it in, it's just that with job uncertainty etc, I'm just trying to line up options if I need to get to money fairly quickly.

Sorry if this seems all rather basic, but I have no idea on this.

Thanks in advance to anyone who can help!

EdInvestor

sylar18 wrote: »

So, my question is, can I "cash in" the pension now (I'm 31).

No.The earliest you can get money out is at age 55, when you can extract 25% tax free. The pension will be increased to match inflation over the years.

MikeJones_2

Hi EdInvestor,

EdInvestor wrote: »

The pension will be increased to match inflation over the years.

Just for clarification, how do you arrive at your statement from the information that the poster has given?

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.

Qualcuno

MikeJones wrote: »

Just for clarification, how do you arrive at your statement from the information that the poster has given?

For defined benefit schemes, that would be a legal requirement. But the way sylar talks about the amount paid in sounds like a defined contribution scheme to me...

MikeJones_2

Hi Qualcuno,

Qualcuno wrote: »

For defined benefit schemes, that would be a legal requirement. But the way sylar talks about the amount paid in sounds like a defined contribution scheme to me...

That's what I suspected too, so Ed's reference to the pension increasing to match inflation might confuse the poster or other readers of the post?

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.

EdInvestor

The reason I assumed it was a final salary scheme was because the OP said it was non-transferable.

dunstonh

it may have been non-transferrable into the new scheme. Not all schemes will accept transfers, or will not take protected rights or may only have a limited window to do the transfer.

i can see why you thought it Ed but then I can see why the others think money purchase as it says the employer paid into it. Hard to tell which to be honest.