Getting money out of pension

hot.chick

Hi there,

Although hav had a personal pension for about 9 years, haven't got a clue about these t hings at all!!!

Is it true you can't get your money out of them????? I have more than one on the go - coz I started a company one and am not looking to start a new company one aswell.....

So what do I do?

I would like to close one of them and have the money back - is this possible???

Any and all advise welcome

Thanks

S x

Debt_Free_Chick

hot.chick wrote:

I would like to close one of them and have the money back - is this possible???

Any and all advise welcome

No. It's designed to provide you with an income in retirement. The only way you can money out is when you retire. You can then have about 25% of it as a tax-free lump sum (under current tax rules), with the remainder used to provide you with a regular income ... to pay your bills and keep you off means-tested State benefits

It's a bit like having an orphaned savings account. You might put no more money in, but what's there is there and continues to be governed by the terms & conditions of the plan.

HTH

hot.chick

oh............ I never knew that - I can see why they do it - and ok, i suppose thsts the idea of a pension so we don't keep dipping in and out of the like we can savings accounts..........

hmmmm..... back to the drawing board to fund new car then!!!!

lisyloo

The only way you can money out is when you retire.

The money can also come out if you die or if you are terminally ill with less than a year to live.

However I presume neither of those are attractive options.

hot.chick

hmmmmm..... maybe not! lol

I just thought since I had more than one on the go I could cash one of them in.

This assumption however is wrong - :-(

How silly of me to be paying into things willy nilly without knowing exactly what it's all about

EdInvestor

Amazing how many people don't seem to realise that once you pay money into a pension, you can never get it out. :rolleyes:

Pal

I think "never get it out" is a bit harsh. Most people get out more than they put in, once you take investment returns into account, and the half of the pensioner population who live longer than average mortality can get a lot more out than they put in, just spread over a number of years.

exil

You can get the money out at 50 (55 from 2010) but in the form of a 25% lump sum and annuity, or by "drawing down".

Whether that reassures you depends on how old you are!

hot.chick

i'm 29 - won't be holding out for this to get my new car with!!!!!

would have died through walking by then!!!

Pal

Alternatively, won't all that walking will help guarantee that you remain a "hot chick"?