Basic pension advice please :(

matt0677

I am completely clueless when it comes to pensions.

One of the things which I intend to do in order to ease my financial situation is to get out of my employers pension scheme. I've only been involved for 18 months but the payments are too high for my current situation.

I have enquired about the rules and I can get out if I give a months notice, but they will not refund my contributions. I will have three months to find another scheme which suits me better, or else my contributions will simply be lost. Seems a little unfair since it says in the literature that I can withdraw and get a refund in the first 2 years, but apparently that no longer applies...

In an ideal world I wanted to cancel my membership, saving a fair amount each month, and use the money already paid in to clear a credit card debt which would ease my situation further.

So I wonder whether I could transfer to a scheme which allows me a way out? Preferably by releasing at least some or all of the money I've paid in so far.

Any advice would be welcome.

Matt

jem16

matt0677 wrote: »

So I wonder whether I could transfer to a scheme which allows me a way out? Preferably by releasing at least some or all of the money I've paid in so far.

This is not possible. You will not be able to access any pension scheme until age 55 at the earliest.

Are you sure you can't stay in the scheme which sounds like a final salry scheme? You will seriously regret it later. You won't save as much as you think you might as you will pay more tax and NI.

What scheme are you in?

dunstonh

In an ideal world I wanted to cancel my membership, saving a fair amount each month,

Many would consider that cancelling will cost you a fair amount. Certainly in the long term.

CLAPTON

what is your salary
now much do you pay into your pension
is it a final salary scheme or what
how much does your emplyer pay into the scheme for you
your employers contribution is 'free' money you would be very unwise to withdraw from the scheme
also remember you get tax relief on your contributions

Ginger_Red

Your contributions won't be lost - you just won't be able to get the value back until you retire.

If your employer is contributing (or if it's a final salary scheme) you'd be unwise to stop contributing yourself. Whatever age you are you should be contributing to a pension scheme, and an employer scheme will be set at a sensible percentage of your salary.

If you're struggling to make this sacrifice, you're spending too much elsewhere

You could pull out, but I'd only do it if you were in real financial difficulties - you'd be better making cutbacks in any other area.

cyclonebri1

That £0000 in your pension fund has cost probably 1/2 that plus 25% if that makes sense, ie, you have paid 3/8th ish of that in.

It's a no brainer. You can't get at it because you shouldn't. The only thing our beloved goverment have got right this last 40 years, IMHO of course

hethmar

Is it not possible to reduce your contribution?

cyclonebri1

hethmar wrote: »

Is it not possible to reduce your contribution?

OP wants to get at the money already paid in

seven-day-weekend

They want to draw the money out now......And when they retire will live on what?

cyclonebri1

seven-day-weekend wrote: »

They want to draw the money out now......And when they retire will live on what?

Not agreeing, far from it check out post #6, just clarifying what the op asked

seven-day-weekend

I was making a general comment cyclonebri, not responding to your post in particular.