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

corrsfan

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.

Sorry for dragging up an old post but this is what I'm trying to avoid. Most pension things I've seen say if it's been opened 2 years or less you dont get the option of keeping it there, instead they give it back to you. Which is fine, unless your employer pays more than you into the fund, and you lose the benefit of any gains they might have made too. Is there any way round about this so I can try to keep ahead of the game a little?

atush

AFAIK, most will allow you to transfer the pension out to a personal pension if opened for 2 years or less.

There could be problems if the pension you transferring out of is a Defined Benefit/FS pension. But given you would lose the employers contribs and tax relief, it should be easier to find an IFA to sign off on the transfer.