Cashing small pension in early due to financial difficulties - can it be done?

molerat

SallyG wrote: »

13 December 2010
Government issues a call for evidence on allowing early access to pension savings

Financial Secretary to the Treasury, Mark Hoban MP, today launched a call for evidence document on early access to pension savings. As set out in the Coalition Agreement, the Government is committed to exploring whether early access could provide an incentive to encourage higher levels of private pension saving.
The Government is keen to receive evidence on the potential benefits and risks of allowing early access to pension savings, how it could be offered, and to what extent a reform would be welcomed by pension schemes, providers, individuals and other interested parties. The Government will make a decision on whether to develop more detailed proposals in this area in light of the responses received.
Mark Hoban said:
“The Government is committed to encouraging saving and wants to give individuals the maximum flexibility and responsibility to save for retirement.
Early access is an idea we are keen to consider,
and so today we ask pension schemes, providers and individuals to offer their evidence on the possible merits of any reform in this area.”
Early access would be a further step in giving additional flexibility to individuals over their savings,
following the publication last week of the draft legislation and summary of responses on removing the requirement to annuitise by age 75."

https://forums.moneysavingexpert.com/discussion/3182608;)

dunstonh

bendix wrote: »

people can still get contributions back, if they leave the scheme within two years of it starting (dunstonh will confirm).

However, they will receive only their own contributions and NOT those of their employer OR the contribution of the tax man.

Defined benefit schemes usually have a period you can ask for a refund of contributions if you leave the scheme. Most common is 2 years. However, money purchase schemes, such as personal pensions, do not.

The Friends Life NGP pension covers their stakeholder and personal pension range and has no period you can get money back.

bendix

dunstonh wrote: »

Defined benefit schemes usually have a period you can ask for a refund of contributions if you leave the scheme. Most common is 2 years. However, money purchase schemes, such as personal pensions, do not.

The Friends Life NGP pension covers their stakeholder and personal pension range and has no period you can get money back.

Yeah. What he said.

And stuff.

jh2009

SallyG wrote: »

13 December 2010
Government issues a call for evidence on allowing early access to pension savings

Financial Secretary to the Treasury, Mark Hoban MP, today launched a call for evidence document on early access to pension savings. As set out in the Coalition Agreement, the Government is committed to exploring whether early access could provide an incentive to encourage higher levels of private pension saving.
The Government is keen to receive evidence on the potential benefits and risks of allowing early access to pension savings, how it could be offered, and to what extent a reform would be welcomed by pension schemes, providers, individuals and other interested parties. The Government will make a decision on whether to develop more detailed proposals in this area in light of the responses received.
Mark Hoban said:
“The Government is committed to encouraging saving and wants to give individuals the maximum flexibility and responsibility to save for retirement.
Early access is an idea we are keen to consider,
and so today we ask pension schemes, providers and individuals to offer their evidence on the possible merits of any reform in this area.”
Early access would be a further step in giving additional flexibility to individuals over their savings,
following the publication last week of the draft legislation and summary of responses on removing the requirement to annuitise by age 75."

The Governments decided not to do this this week, so this won't happen.

http://www.moneysavingexpert.com/news/banking/2011/04/early-pension-access-denied-by-government

Cook_County

If it is trivial you can withdraw 100% after tax on your 55th birthday...so you could take out a modest loan from a friendly bank and repay it all on your 55th birthday. At least you'd have something to look forward to!

RichandJ

Cook_County wrote: »

If it is trivial you can withdraw 100% after tax on your 55th birthday...so you could take out a modest loan from a friendly bank and repay it all on your 55th birthday. At least you'd have something to look forward to!

Afraid not. TCLS can only be paid between 60 & 75

http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM09104910.htm

Loughton_Monkey

bendix wrote: »

Yeah. What he said.

And stuff.

Er.... have you been 'on' anything lately, Bendix?

Perhaps the Prime Minister - at the next election - in the 'debates' might use your expression rather than the usual "I agree with Nick".

SallyG

About early access and "daft" questions:
Financial Secretary to the Treasury, Mark Hoban MP launched a call for evidence on early access to pension savings ie he seriously considered it - who's to say next week they won't quietly introduce it after all- a couple of years back I was told I would eventually have to buy an annuity and to plan on that footing - I had Safeguarded Rights [no tax free cash lump sum allowed] that became Protected Rights within a year- soon Protected Rights will disappear - unless you watch pensions policy like a hawk you have no idea from one week to the next what gives.
You might assume what applied yesterday still applies and fall over badly - that's why there is no such thing as a daft question about pensions.
Yesterday's Bendix-derided question is today's policy.

dunstonh

Financial Secretary to the Treasury, Mark Hoban MP launched a call for evidence on early access to pension savings ie he seriously considered it - who's to say next week they won't quietly introduce it after all-

Pension rules change on average every 7 years. So, you can never really rule anything out. However, given the Govt announcement two days ago that they would not introduce early access, its fair to assume that they will not be bringing it in by the back door any time soon.

Also, the negatives against early withdrawal were pretty strong and the costs of implementation significant. Defined benefit schemes would realistically not be able to implement it. Money purchase schemes would not be forced to implement it. It would be an option. So, your stakeholder pensions wouldnt offer it and those that do would have to charge a fee to offer it as they are not going to accept transfers in with no cost just to say a load of money paid out.

Loughton_Monkey

SallyG wrote: »

About early access and "daft" questions:
Financial Secretary to the Treasury, Mark Hoban MP launched a call for evidence on early access to pension savings ie he seriously considered it - who's to say next week they won't quietly introduce it after all- a couple of years back I was told I would eventually have to buy an annuity and to plan on that footing - I had Safeguarded Rights [no tax free cash lump sum allowed] that became Protected Rights within a year- soon Protected Rights will disappear - unless you watch pensions policy like a hawk you have no idea from one week to the next what gives.
You might assume what applied yesterday still applies and fall over badly - that's why there is no such thing as a daft question about pensions.
Yesterday's Bendix-derided question is today's policy.

A point with some validity.

But to me, any 'irritation' with the huge frequency of this type of question is less to do with this.

I don't know what your own 'trade' is, but let us imagine that you know virtually nothing about legal matters or art/antiques.

So you have waved goodbye to your neighbours - who you don't really know - and they have moved out leaving a skip outside to be collected the next day. You glance in it and find a painting by "Gordon Bendix".

Clearly, like anyone, you would have two burning questions. Is it worth anything? If so, can I legally keep it?

Now correct me if I am wrong but would your first actions be (a) to find an art forum and post a question "Anyone heard of an artist called Gordon Bendix. I have a landscape dated 1815........", and (b) find a legal forum and jump straight in with the question "I found a painting worth £5,000 in my neighbours skip. Can I keep it..."

I think not. I think that a few minutes of 'googling' would very soon give you pretty much the answers you are seeking. Not to do so is rather lazy, wouldn't you think? And to compound your laziness and jump straight in with 'Janet & John' questions to unpaid people with some expertise invites more than a little sarcasm doesn't it?