Pension: Cash Equivalent Transfer or Refund

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
6 replies 941 views
JasprJaspr Forumite
21 Posts
Part of the Furniture 10 Posts Combo Breaker
Hello, I'm hoping I can get pointed in the right direction obviously I understand any info given in on has to be opinion rather than advice and will be treated as such. TIA

I was with a company for 6 months'ish and paid into a pension scheme. I left just before Christmas, I have received a letter from the pension company.

I have been offered a refund of what I paid in (minus tax and NI) or a cash equivalent transfers of around 4 times that amount, I guess that includes the employers contributions ! I
am currently working as a contractor so don't have a pension running currently and the pension company have put a a time limit of 3 months on my decision.

My question is this :)

Should I take the money and run OR is there a type of product I can transfer my Cash equivalent transfer fund into ?
! Total Noob !

Replies

  • silvasavasilvasava Forumite
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    Hi Jaspr - I would think the transfer would be the best option or you will lose out on the contributions paid by your previous employer & believe me every little helps! I would suggest you look at putting it into a Stakeholder Pension. From my (very) limited knowledge if your work is likely to be for short term contracts you can put in what you like when you like up to a certain limit. There are also very low charges. I'm sure there will be other MSE'rs who can also give you good pointers
    Small victories - sometimes they are all you can hope for but sometimes they are all you need - be kinder than necessary, for everyone you meet is fighting some kind of battle
  • lisyloolisyloo Forumite
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    If you take the cash, you'll lose the employer contributions (from the sounds of it) plus the tax and NI.
    This sounds like a no-brainer to me.
  • Loughton_MonkeyLoughton_Monkey Forumite
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    Hung up my suit!
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    Isn't it a bit of a no-brainer to set up your own pension and transfer the 4X amount in? Hope you are thinking about the big question "What am I going to live on when I retire?"
  • JasprJaspr Forumite
    21 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Cheers guys, I'll take a look at a Stakeholder Pension, if I can put money in when I'm earning it is a no brainer :)

    :T
    ! Total Noob !
  • silvasavasilvasava Forumite
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    Jaspr wrote: »
    Cheers guys, I'll take a look at a Stakeholder Pension, if I can put money in when I'm earning it is a no brainer :)

    :T

    Jaspr - I'm sure if you search the forums you'll get some more ideas but it would seem silly to lose the employer contribution as its 'free' money!
    Small victories - sometimes they are all you can hope for but sometimes they are all you need - be kinder than necessary, for everyone you meet is fighting some kind of battle
  • JasprJaspr Forumite
    21 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Thanks I will. Had a little prod around and I think I need professional help to decise where to put it, but (I agree I don't want to lose that freee money

    :money: :beer:
    ! Total Noob !
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