Help needed - Do I cash in my pension?

leon103

Good Evening 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.

dunstonh

It puts your planning just over £1025 behind. It is robbing your retirement to pay for things now but if you accept that then its fine.

Which version of the police pension will you be on? Dont assume they are all the same. I have a friend who changed divisions and the pension changed with it and was not as good as the previous one.

leon103

dunstonh wrote:

It puts your planning just over £1025 behind. It is robbing your retirement to pay for things now but if you accept that then its fine.

Which version of the police pension will you be on? Dont assume they are all the same. I have a friend who changed divisions and the pension changed with it and was not as good as the previous one.

Not sure to be honest. I will be starting has a constable. Everyone says its a great pension. I haven't had all the forms through though yet.

dunstonh

Everyone says..... is a bad thing to listen too. I have heard everyone says its a bad scheme refer to a 5% employer contribution scheme before and a good scheme refer to one with just 1%.

Generally it should be a good scheme but the years of service and retirement dates seem to differ. Depending on the number of years service you will have, you may not be able to rely on it as your sole source of income in retirement.

leon103

dunstonh wrote:

Everyone says..... is a bad thing to listen too. I have heard everyone says its a bad scheme refer to a 5% employer contribution scheme before and a good scheme refer to one with just 1%.

Generally it should be a good scheme but the years of service and retirement dates seem to differ. Depending on the number of years service you will have, you may not be able to rely on it as your sole source of income in retirement.

I know its not good to listen. But I have spoken to constables in the force I am joining. I think its 30 years service and about 11% contribution on my part. NOt sure what their scale is.

I will be 55 when I retire and after that I tend to find another job (part time hopefully).

EdInvestor

I wouldn't worry too much about cashing in the old pension.But keep as much of it in your ISA as you can for your emergency fund.

leon103

EdInvestor wrote:

I wouldn't worry too much about cashing in the old pension.But keep as much of it in your ISA as you can for your emergency fund.

Thanks for the advice.

I don't plan on spending all of it. I just want to make sure I have enough to cover bills through Dec and Jan.

tyllwyd

Just asking for my own interest really - I would have thought that unless you planned to add to it, a pension with only about £1000 invested in it wouldn't be likely to give more than a token amount of annual income when it came to retirement. Since the OP has got a work pension lined, up don't you think there is a valid argument for getting the money out so that it is available to help him out now, while he is still getting on his feet, rather than waiting until retirement and getting a few miserly pounds out? He'll either be rich or poor at that point, but by itself this little pension won't tip the balance either way. What do other people think?

leon103

tyllwyd wrote:

Just asking for my own interest really - I would have thought that unless you planned to add to it, a pension with only about £1000 invested in it wouldn't be likely to give more than a token amount of annual income when it came to retirement. Since the OP has got a work pension lined, up don't you think there is a valid argument for getting the money out so that it is available to help him out now, while he is still getting on his feet, rather than waiting until retirement and getting a few miserly pounds out? He'll either be rich or poor at that point, but by itself this little pension won't tip the balance either way. What do other people think?

If I don't withdraw it I am hoping it can be transfered to my new employer.

vij1366

Get A Loan Its Better That Way U Will Have A Better Pension Builld

leon103

vij1366 wrote:

Get A Loan Its Better That Way U Will Have A Better Pension Builld

I don't want a loan. I rather scrub and save than go into debt.