Advice need - Future money problems

leon103

Good afternoon everyone.

Need a bit of advice.

Here goes.

Basically I am about to change jobs. On the 5th Dec I finish my current job but don't start my new job until the 18th Dec. Being Dec pay will be early so I don't think I will get anything from my new job in Dec. I won't get much for the 5 days off my current job either.

December is an expensive month and going without pay for 2 months is going to be very hard. I have saved a bit since knowing this is going to happen and I have set up an overdraft on my account but this will only be for £250, interest free then 9.9% after that.

They only around this is if I could cash in my pension from my current job with will be about £800 after deductions (haven't been in the job long). I know this isn't the best thing to do but I am going into the Police (new job) so will have a good pension through them.

Would cashing in my pension be such a bad thing?

Thanks in advance.

HazelEyes_3

Can you get a temporary job for the 2 weeks gap? If not then cashing in a small pension pot is preferable to going into debt to tide you over especially as you will have a decent pension in your new job.

leon103

HazelEyes wrote:

Can you get a temporary job for the 2 weeks gap? If not then cashing in a small pension pot is preferable to going into debt to tide you over especially as you will have a decent pension in your new job.

Was thinking of doing some work from home. But on the 7th I go on holidays for a week (parents paid for it for my birthday).

Was hoping my back pay would be paid in December but it looks like I am going to be waiting for it even longer.

leon103

*Bump*

Sorry but need the advice

climbgirl

The public sector tends to have great pensions, so I'd be inclined to cash in the old pension to tide you over. If you're able to, you can always make up the £800 again in the future.

What's the possibility of temp work for that couple of weeks? A lot of shops take on extra workers over that time.

leon103

climbgirl wrote:

The public sector tends to have great pensions, so I'd be inclined to cash in the old pension to tide you over. If you're able to, you can always make up the £800 again in the future.

What's the possibility of temp work for that couple of weeks? A lot of shops take on extra workers over that time.

Thanks for the reply. I am off on holidays on the 7th Dec for a week so can't do any extra work. Been looking at work at home stuff. Also going to see if family need anything doing for a bit of extra cash.

tyllwyd

My advice would be to try posting on the Pensions board to see what they say there. My feeling is that if you have only got about £800 in a pension, it isn't ever going to grow into a huge amount anyway so I'd be inclined to cash it in now, and then promise myself to save it again - in an ISA or making higher payments into your work pension or whatever - over the next few years. But that's just my feeling, I have absolutely no knowledge about these things whatsoever!

leon103

tyllwyd wrote:

My advice would be to try posting on the Pensions board to see what they say there. My feeling is that if you have only got about £800 in a pension, it isn't ever going to grow into a huge amount anyway so I'd be inclined to cash it in now, and then promise myself to save it again - in an ISA or making higher payments into your work pension or whatever - over the next few years. But that's just my feeling, I have absolutely no knowledge about these things whatsoever!

Thanks for the advice I will post over there now.

mountainofdebt

but I think cashing in your pension depends on the rules of the scheme - some allow the cashing in if you've been in there for less than 2 years others don't.

You would also only get your contributions back less 20% tax

Another thing to remember is that you are dealing with pension companies here so it would well be Easter before you get the money, lol!

I know its not really the done thing but could you ask your parents for a sub until you get paid in January, giving them a cheque as some sort of guarantee ????

leon103

mountainofdebt wrote:

but I think cashing in your pension depends on the rules of the scheme - some allow the cashing in if you've been in there for less than 2 years others don't.

You would also only get your contributions back less 20% tax

Another thing to remember is that you are dealing with pension companies here so it would well be Easter before you get the money, lol!

I know its not really the done thing but could you ask your parents for a sub until you get paid in January, giving them a cheque as some sort of guarantee ????

The £800 i quoted is minus tax, etc. It is a rough figure. I think I got about £1400 in there but only get 60% back or there abouts.

I would have to check how long until I got my money, didn't think of that.


I could ask for a lend of money. I would think I need a lot well at least £600 to cover rent, food etc for 2 months. Although I am saving every penny towards these months. Even gone to paying minimum payment on my CC.

Not sure if my parents could lend too much though, it is an hard time for everyone and my father is redundant as of 1st dec.

madduck

Have you thought about contacting your new employer to see what arrangements would be in terms of your December pay? Although you are starting late on in the month, they might not make you wait until end of January and then pay a month and a halfs salary. They may do weekly pay runs and add you to one of the December weekly pay runs to help out at a difficult time of the year. Worthwhile asking anyway!

Don't want to add any further difficulties - but do you know what the position is regarding holidays taken whilst you've been with your current employer? Have you taken more or less holidays than you are entitled to on a pro rata basis? If you've taken more - you might have to pay back money. If you've taken less than you're entitled to - they may be due to pay money to you.

Re the payment of pension contributions - don't know who your current employer is and how the scheme is administered, but wouldn't necessarily bank on it being paid that quickly.