Can I Cash In My Army Pension?

jamesd

Loughton Monkey, just buy something that makes money if it goes up inside the pension and buy something that makes money if the same thing goes down outside it. Stake all of the pension money on it and enough outside to match it. If it goes down you've effectively moves the money out of the pension and can't lose because you've bet on both up and down...

County_Mounty

I take it from the replies so far no one really knows?

dunstonh

County_Mounty wrote: »

I take it from the replies so far no one really knows?

No. We all know the answer. its just that it seems to be getting asked twice a day at the moment and the regulars are bored of it. Hence the "creative" responses.

To put you out of your misery. No you can't. It isnt yours to sell. And even if you could do it, putting it in ISA would be far inferior.

lisyloo

The answer is that you can't cash in a pension unless you die, are terminally ill with less than 12 months to live (certified by 2 doctors) or you reach retirement age (55).

The deal is that you get valueable tax breaks in return for tying up the money until retirement.
Someone should have explained to you that the money was tied up when you took it out.

bendix

lisyloo wrote: »

The answer is that you can't cash in a pension unless you die, are terminally ill with less than 12 months to live (certified by 2 doctors) or you reach retirement age (55).

The deal is that you get valueable tax breaks in return for tying up the money until retirement.
Someone should have explained to you that the money was tied up when you took it out.

Again .. . another example of the dangers of 'loose' language on this subject.

Someone reading your sentence will now be convinced you can 'cash in' a pension at age 55. You cannot. You can start to benefit from your pension fund at 55, but that is a totally different proposition from 'cashing it in.'

molerat

As it is an Armed Forces preserved pension the OP will not get it until 60 unless it is transferred into another scheme. http://www.mod.uk/DefenceInternet/AboutDefence/CorporatePublications/PersonnelPublications/Pensions/AFPS75/

Cook_County

hugheskevi wrote: »

Find a woman aged over 55 with no money who you can trust.

Marry her, divorce her, share the pension, trivially commute the pension and bob's your uncle

I would hope that the lady concerned has a terminal illness but her Will leaves the undrawn pension pot to her (by then) ex-husband so he gets the ex-wife's share as well when she dies and without too much delay.

Loughton_Monkey

County_Mounty wrote: »

I take it from the replies so far no one really knows?

These questions give us some light relief. You may have noticed that any posts have to be at least 10 characters long. So the correct, efficient, and brief reply of "No" is simply not possible.

If you Google correctly, you will find some lovely sites that promise to get cash out of your pension. I suspect your three years-worth would be too small to interest these people since they much prefer to scam people with larger amounts. I think they tell you to transfer your pension money to a SIPP in which you can buy 'commercial property'.

This doesn't get money out of your pension on its own, but if you buy it from them, and then sell it back for peanuts, then lo and behold their pockets are rich to the same amount as your pension is poor. Hence they have 'done their job' by transferring money out of your pension.

You can then have a lot of fun arguing with them as to why they should give any of the money to you. After all, you asked them to get cash out of your pension and that's what they did.

Loughton_Monkey

jamesd wrote: »

Loughton Monkey, just buy something that makes money if it goes up inside the pension and buy something that makes money if the same thing goes down outside it. Stake all of the pension money on it and enough outside to match it. If it goes down you've effectively moves the money out of the pension and can't lose because you've bet on both up and down...

It's good thinking, and I've thought about this one myself.

But first of all, you've got to find that 'specific' investment that you know is going to go down! And if we knew that, we'd just short it in a CFD and make loads-a-money.

Knowing my luck, if I was looking to transfer pension money out this way, I'd end up betting the 'wrong' way and end up with half my 'free' cash now locked up in pension!

ffacoffipawb

County_Mounty wrote: »

I was in the army for 3 years between 1997 and 2000. Can I cash in the pension?

No, you'll just have to soldier on ...