how to cash in on an early pension

terry2shoes

i have a individual pension plan with the prudential, and like the title says "how can i cash in on an early pension"?

i have phoned them and they have told me that i cannot cash in on it till i reach retirement age.

is there a company i can transfer it to who will let me cash it in?

thanks in advance.

Andy_L

You need to be declared terminally ill to get your pension before 50 (rising to 55 next year)

McKneff

how old are you.

You cannot cash a pension in until you are 50 (65 if yours stipulates this)
This age rises in April 2010 to 55

terry2shoes

i am 33 and have been out of work for nearly 4 years now due to an accident were i broke my back in 2 places, and could of really done with this. grrrr

thanks.

bendix

Let me explain terry. It's called a pension because . . well . . that's what it's for. Your pension. If it was just for savings, it would be called . . well . . . you get the drift, don't you?

EdInvestor

bendix wrote: »

Let me explain terry. It's called a pension because . . well . . that's what it's for. Your pension. If it was just for savings, it would be called . . well . . . you get the drift, don't you?

Except that

*If you pay into an occupational pension and then leave the company before 2 years elapse, you can get all your contributions back in cash

*If your pension total amounts to less than £17,500 by the time you are 60, you can take it all in cash

*In many cases involving small company private pensions, most of the fund can be taken in cash.

The pension rules are not so black and white that you'd have to be a fool to fail to notice this wrinkle.The problem lies with the failure of salesmen to mention it, so people don't realise there is a spectacular downside to pensions.They tend not to mention annuities either, that's the other big downside.

bendix

EdInvestor wrote: »

Except that

*If you pay into an occupational pension and then leave the company before 2 years elapse, you can get all your contributions back in cash

*If your pension total amounts to less than £17,500 by the time you are 60, you can take it all in cash

*In many cases involving small company private pensions, most of the fund can be taken in cash.

The pension rules are not so black and white that you'd have to be a fool to fail to notice this wrinkle.The problem lies with the failure of salesmen to mention it, so people don't realise there is a spectacular downside to pensions.They tend not to mention annuities either, that's the other big downside.

Not very helpful Ed. This is the most common question on this forum, and notwithstanding your clever clever replies, you know what the basic answer is. All you're doing with this reply is giving hope where there is none.

dunstonh

The problem lies with the failure of salesmen to mention it, so people don't realise there is a spectacular downside to pensions.

The fact you are asked your retirement age and that its called "pension" are a give away. Why else would you take out a pension?

They tend not to mention annuities either, that's the other big downside.

And get a great big yawn from the person who doesnt give two hoots about one of the options that they could have available in 40 years time.

Most people forget most of what they are told within days, let alone 10-20 years later.

EdInvestor

dunstonh wrote: »

And get a great big yawn from the person who doesnt give two hoots about one of the options that they could have available in 40 years time.

Most people forget most of what they are told within days, let alone 10-20 years later.

I wonder if all IFAs view their clients with such contempt?

bendix

EdInvestor wrote: »

I wonder if all IFAs view their clients with such contempt?

Seriously . . will you two get a room?

The sexual tension between you is electrifying

EdInvestor

bendix wrote: »

Seriously . . will you two get a room?

The sexual tension between you is electrifying

:rotfl::rotfl::rotfl:


He is a New Zealander of course, their minds are said to be on sheep and similar issues a lot of the time...