Cashing in? Confused...

niksyg

Hi,

I have 2 pensions, one with TPS which is linked to my current job and one from a previous employer which is with Friends Provident.
I am 25 and have recently bought my first house, and it now needs a fair amount of work doing to it. Is it possible to cash in the Friends Provident pension (its current value is £1783) as the money would be helpful or is that not an option and should I just transfer it across to my teachers pension??

I have had a look at Pensions Advisory Service website but I find it all sooooo confusing, any help would be greatfully received.

ViolaLass

No, you cannot cash in a pension. It's a pension, not a savings account.

niksyg

Thanks, but when I left the Prison Service I was given the money from that pension as a lump sum so I was a bit confused.

dunstonh

niksyg wrote: »

Thanks, but when I left the Prison Service I was given the money from that pension as a lump sum so I was a bit confused.

No you didnt. You misunderstood what you did.

You must have only had short service. With some schemes, if you only have short service (less than two years is most common) then you get the choice to transfer to another pension or give up the employer benefit and receive your contributions back minus tax and NI.

Often you see figures like getting £500 back after tax and NI or transfer it to another pension and get £5000 transferred. Getting the contributions back is typically a very bad choice.

You were not given a lump sum from the pension.

niksyg

dunstonh thanks for your reply - didn't appreciate the tone though! I asked because I am in need of help, so it is obvious that I don't really understand the correct terminology, there was no need to be so rude.

System

You must be very sensitive. I didn't see anything rude in the reply, just good sensible advice and an explanation.

nookey_bear

yea dunstonh, not everyone is on this forum to wind you up, some people just want good old fashioned advice and guidance. bear in mind that some of us are not quite as intellectually adept as you, and stop scaring people away

OurKev

I saw nothing but clear, helpful advice?

moonrakerz

NOT the required answer - therefore response is rude and unhelpful !

niksyg

No no no - I just read the tone as being rather brusque that was all. I find the whole business of pensions confusing and felt that the fact I had used incorrect terminology to then be picked up on was a bit harsh! I appreciate the help and support though and wasn't looking for a required answer!

Lokolo

niksyg wrote: »

No no no - I just read the tone as being rather brusque that was all. I find the whole business of pensions confusing and felt that the fact I had used incorrect terminology to then be picked up on was a bit harsh! I appreciate the help and support though and wasn't looking for a required answer!

People don't learn otherwise. We (the pension forumers) get asked this question 3-4 times a week. Surprsingly, repeating the same answer, gets frustrating.

There are others who wants to learn to budget, then when we tell them to cancel sky etc. they refuse and say they need it. Harsh words get through to people, cuddling up to people doesn't. No-one is rude here apart from maybe Bendix, but he means well, it's just the only way to get through to people on this forum.