Can I cash in a private pension?

melodyman

(Sorry for being a bit thick!!)

Years ago I had a private pension, but when times got a bit difficult I contacted them and asked them to stop my regular payments into it. I haven't paid anything into it for about 10 years.

So - the money that I did pay in: Can I just withdraw this??

Thanks in advance for any help

dunstonh

So - the money that I did pay in: Can I just withdraw this??

Not unless you are over 60 and have less than £15,000 on it. (assuming post A day rules as it would be borderline as to whether you would get pre A day triviality rules in time for the tax year cut off).

Other option would be to transfer it to your occupational or current pension scheme. Alternatively, pre 1995 plans (more common on pre 1988 plans) often had guarantees built into them which can make them very attractive to keep where they are.

Tahiti

I understand you can take a proportion of the money if you are over 50 and it's a Personal Pension Plan, with an annuity for the rest of your life. Triviality might also be an option whereby you would receive a part of it tax free, with the remainder as a taxable lump sum.

There is no refund as such.

melodyman

Thanks for your replies.

I'd thought as much!

I haven't got a private pension now - (except that one of course). I'm 39 so it'll be a while before I'm 60!

I'm self-employed and pay the minimal class 2 NI contributions, but other than that I haven't made any provisions for pension. This is something I'm looking into, but at the moment I couldn't afford substantial regular payments into a pension plan. (Probably £20 to £30 a month max!).

I think I'll have another good browse of this site, then possible get back with any more questions! I'm clueless about pensions at the moment - need to do something about that...

dunstonh

Its fairly simple in your case. As you are self employed (and assuming satisfactory NI history), you will only get the basic state pension of £4266 a year.

You can work out if you can afford to live on that or not.

EdInvestor

Who is the pension with and what funds is it invested in?

Even if you aren't contributing to it, you should make sure it's performing properly and you are not paying high charges on it. If you are, and there are no good funds at your company, then move it.

This applies to ALL old pensions - these are assets, make them pay their way

melodyman

It's with Abbey Life and I think there's about £4,000 in there.

You're right though - I do need to look into it to make sure that it's performing properly. I get an annual statement and file it. Trouble is - I'm busy moving my whole house around at the moment and haven't a clue where my last correspondence is!!!!

EdInvestor

Is it a "contracted out" (protected rights) pension Melodyman, can you remember?

melodyman

Hello again - I've found my last statement! It's dated 04/10/06.

To be honest I don't know what "protected rights" means!! However, this is in my statement:

"the value of your non-protected rights fund on 30 September 2005 is £5,418 and the value which may be transferred to a pension plan with another insurer on that date is £3,770"

Does that mean anything to you?

melodyman

Woops - sorry - the statement is dated 04/10/05

EdInvestor

"the value of your non-protected rights fund on 30 September 2005 is £5,418 and the value which may be transferred to a pension plan with another insurer on that date is £3,770"

Yikes :eek: Just look at that exit penalty. :mad:

This is always the probability with these old pensions at insurers like Abbey Life and Allied Dunbar.

They are going to deduct all the charges that you would have paid until maturity when you leave even though you are leaving well before that and thus you will lose 30% of your money.

It's highway robbery, but there's absolutely nothing you can do about it except leave and put the pension somewhere where it can actually grow rather than get eaten away by these appalling charges.

Are you familiar and comfortable with internet banking Melodyman? Do you think you would take an interest in this money if you could invest it/monitor it online?