Is there any way I can get my pension funds NOW?

Carmen_Queasy

I had a pension scheme with my old job I left 6 years ago, but haven't made another one because I simply can't afford it. The thing is I'm really broke at the moment struggling to pay my mortgage and could really do with that money now in case I lose my home, so would I ever be able to get my money back under these circumstances? TIA if anyone knows!

CLAPTON

not unless you are 50 years old

vegankris

You can cancel it early, but only within the first 2 years, so if you left 6 years ago then unfortunately I don't think you'd be able to do that. How old are you?

Carmen_Queasy

I'm only 28 so that's bad news then! Thanks for your replies anyway guys.

Really frustrating as I know I have all this money saved away and i need it NOW but can't get at it!!

whitfreak

Its even worse than that. If its a defined benefit scheme then you'll defined income and maybe a lump sum. And if its a contribution scheme, you'll have to go and buy an anunity with the value of your pension pot (minus a lump sum). So you won't actually see that money directly again.

Aegis

whitfreak wrote: »

Its even worse than that. If its a defined benefit scheme then you'll defined income and maybe a lump sum. And if its a contribution scheme, you'll have to go and buy an anunity with the value of your pension pot (minus a lump sum). So you won't actually see that money directly again.

Not quite true, you don't have to buy an annuity. You can instead opt for unsecured drawdown.

davidjohn_2

Carmen_Queasy wrote: »

I'm only 28 so that's bad news then! Thanks for your replies anyway guys.

Really frustrating as I know I have all this money saved away and i need it NOW but can't get at it!!

Hi Carmen hope you dont mind me asking was you talked into taking a pension out,it would of been a lot better for you if it had of been an ISA

staffie1

whitfreak wrote: »

Its even worse than that. If its a defined benefit scheme then you'll defined income and maybe a lump sum.

What does that bit mean? I know its typed incorrectly, but its the key bit of the message for DB members!

Aegis

davidjohn wrote: »

Hi Carmen hope you dont mind me asking was you talked into taking a pension out,it would of been a lot better for you if it had of been an ISA

Depends really. If the ISA was fully used up now, the retirement savings pot would be zero. It's possible that this will end up being a blessing in disguise when the time to retire rolls around.

It's almost never a clear cut case as to what's best, especially if pensions get employer contributions or deduction straight from salary without NI taken off to begin with.

Planning for retirement is really important, though it's always good to build up savings as well.

OP: have you called your bank to advise them of the situation? Banks at the moment are under enormous pressure to work with people in bad financial situations to ensure that they don't repossess unless they have to. They might be able to switch you to interest-only for a while. Also contact your local Citizens Advice Bureau to see if they can give you any more information about dealing with debt.

Aegis

staffie1 wrote: »

What does that bit mean? I know its typed incorrectly, but its the key bit of the message for DB members!

It means that a final salary scheme will pay out a tax free lump sum and an income for life.

Carmen_Queasy

davidjohn wrote: »

Hi Carmen hope you dont mind me asking was you talked into taking a pension out,it would of been a lot better for you if it had of been an ISA

I was added to the pension scheme automatically after working there for almost a year- I could choose to opt out but it seemed like a good idea at the time.