Cashing in pension any tips for asking company to exercise discretion?

bored_of_debt

I’m going to write to my pension plan holder asking them to exercise discretion and let me take the cash back out that I put in for just over 2 years at my last company.

They formally give 2 options - keep or transfer but I could really do with the cash so it's not the principle I need help with but reasons to hopefully encourage them to exercise some discretion.

I’m in my early twenties and was wondering if anyone had any tips?

Thanks

purch

had any tips?

Don't waste the postage !!!

bored_of_debt

Do you think it'l be a big fat NO??

Shaztastic

purch wrote: »

Don't waste the postage !!!

This is the best tip you are going to get.

Pensions are governed by scheme rules and legislation which will both remove any discretion when it comes to refunding contributions that have been paid for more than 2 years.

bored_of_debt

Thanks for your replies.

I need to have a good read around before I decide what to do with it.

It was with BGI but I'm not sure now.

Can anyone direct me to a few good websites that will provide a variaty of option for me to read about?

I know it's only small beer but it's all money...

Thanks

MrChips

If you contributed for over 2 years, the money is out of your reach until you retire - current minimum retirement age is 55.

Your options are to leave it where it is, or to transfer it to another registered pension arrangement (i.e. a personal pension, or another occupational arrangement). Even if you leave it where it is, you can still tinker with the investment strategy.

Debt_Free_Chick

bored_of_debt wrote: »

I’m going to write to my pension plan holder asking them to exercise discretion and let me take the cash back out that I put in for just over 2 years at my last company.

They have no discretion to allow this. Legislation prohibits a refund once you have two years contributions, in an occupational scheme. Legislation prohibits any refund of any description, from a personal/stakeholder pension.

Only Parliament has discretion here, but they would have to enact primary legislation (an Act of Parliament) to make the change. Given that it is generally accepted that we all have to save more for retirement, I don't see any Government doing this in the foreseeable future.

bored_of_debt

Debt_Free_Chick wrote: »

They have no discretion to allow this. Legislation prohibits a refund once you have two years contributions, in an occupational scheme. Legislation prohibits any refund of any description, from a personal/stakeholder pension.

Only Parliament has discretion here, but they would have to enact primary legislation (an Act of Parliament) to make the change. Given that it is generally accepted that we all have to save more for retirement, I don't see any Government doing this in the foreseeable future.

I had a read around and discovered that it was like you say not very likely to get a refund - I thought a first that it was a condition imposed by my pension company only .

Still it's not the end of the world - I just need to decide what to do with it.

Any ideas?

I don't have a pension at my new company, with the job that I have i usually stay for 2-4 years at each company, i'm 23, and know little about pensions!!

Thanks...

McKneff

Just leave it where it is for now, think about it each time you change your job. One of these days you will settle into a job for more years, stands to reason youre not going to do 2/4 year job hopping till youre 55/60.

EdInvestor

I'd also suggest that you leave it where it is at present.Later, you may move to a job which does have a pension which you can join.If you then leave that job, you will have 2 pensions.At that stage you could consider joining them together in one pension account to which all other future pensions will be transferred when you change jobs over your working life.

A SIPP can be quite good for this as it gives you access to a huge range of different investments, you're not just tied to those offered at one pension company. The low cost online versions are very easy to manage.

bored_of_debt

Thanks for all of your responses! I'll take a look at the SIPP's then...