Withdrawing funds from a pension?

Careh

Hi everyone,

I paid into a work pension for 10 months whilst working with a old employer and I really wish I didn't.

I was speaking to a colleague the other day and he informed me that it may be possible to withdraw the pension on the grounds of that it is 'seen' as invalid because I haven't paid into it for 2 years.

Does this sound possible to anybody?

Cheers,

bendix

Hang on a second, while I finish my toast and marmite.

I'll come back with a carefully considered response after that, ok?

dunstonh

I was speaking to a colleague the other day and he informed me that it may be possible to withdraw the pension on the grounds of that it is 'seen' as invalid because I haven't paid into it for 2 years.

If the scheme was defined benefit, they would have offered you this on leaving (as they dont want small pots hanging around either). However, the fact you havent been offered it suggests its not defined benefit and if they did offer it you only get your contributions back minus tax and NI. Not any employer benefit.

Money purchase schemes such as group personal pensions dont give refunds. You can transfer them into your new pension though.

Careh

bendix wrote: »

Hang on a second, while I finish my toast and marmite.

I'll come back with a carefully considered response after that, ok?

Is this going to be a 'no'. ?

Careh

dunstonh wrote: »

If the scheme was defined benefit, they would have offered you this on leaving (as they dont want small pots hanging around either). However, the fact you havent been offered it suggests its not defined benefit and if they did offer it you only get your contributions back minus tax and NI. Not any employer benefit.

Money purchase schemes such as group personal pensions dont give refunds. You can transfer them into your new pension though.

Transferring into my new pension would be good.

Also, this may sound dumb, but how do I know if it was defined benefit?

Edit:- Apologies for double post

thenudeone

Defined benefit = pension will be based on your final salary (or perhaps career average salary); usually 1/60th of your final salary for each year of service. Very rare nowadays for new starters, except for the public sector.

Defined Contribution = Once the contribution is made, then after that everything depends on the investment choices, performance, charges, and the cost of buying an annuity when you eventually retire. There is no promise of any particular level of pension.