Cashing in pension?

financialstigma

I was opted into an NHS pension (without my knowledge) when I joined them about 6 years ago. I contributed over £5000 and left the NHS after 3 years employment. I didn't know this at the time, but after 2 years employment it is not possible to get a refund.

I wrote to my MP and she received a letter from Peter Robinson (MD of NHS Pension) re-stating that I would have to wait until the age of 60. I am 34 and desperately need the money to help fund the last 6 months of my PhD (my rent has increased, I am restricted to how many hours I can work outside the PhD and I am no longer breaking even. I have no savings or other pension and I am at my overdraft limit).

Is there any way I can transfer the pension into another scheme and get any refund out of that? It is short term thinking and a long shot, because I stand to lose my tennancy and the security required to complete my PhD.

Many thanks

Browntoa

the pension money is locked until you are (at least) 60 as they stated

financialstigma

I am entitled to transfer the pension into a private scheme, so I wondered if it's possible to move it somewhere I can access it.

Zekko

financialstigma wrote: »

I am entitled to transfer the pension into a private scheme, so I wondered if it's possible to move it somewhere I can access it.

You may well be able to transfer it, but its a pension, not a savings account.

financialstigma

Or do I have a case for legal action, since I was not informed about the opt-out option and didn't receive information about the scheme when I was enrolled?

Lokolo

No you do not have a case for legal action.

financialstigma

Lokolo, I am surprised by your short comment. Are you suggesting it is ok for an employer to take money from an employee without providing any terms for that payment?

GlynD

Lokolo is giving you the right information. I am in the same situation but I transferred my opt-out pension into my private one to build up my fund. You can do that but you cannot access the funds until you are 60 or take medical retirement. He's right, it's a pension, not a savings account.

CannySaver_2

financialstigma wrote: »

Lokolo, I am surprised by your short comment. Are you suggesting it is ok for an employer to take money from an employee without providing any terms for that payment?

Hi

I sympathise with your current money problems.

However, your employment contract will surely have made reference to the fact you would be a member of the pension, furthermore if you didn't want to be a member why didn't you opt out when you saw the deductions on your payslip?

In the long term your membership, even for such a short term, will be valuable to you. Although I agree you might not feel like that now.

As an alternative could you put your PHD on hold for a few months, earn some money and then come back to your studies?
The Canny Saver

Lokolo

financialstigma wrote: »

Lokolo, I am surprised by your short comment. Are you suggesting it is ok for an employer to take money from an employee without providing any terms for that payment?

I think you are being extremely short sighted in wanting to take money from a pension scheme (one of the best out there).

The pension details would have been in your employment contract.

GlynD

OP you will appreciate your pension in years to come. Don't be too shortsighted and fail to pay into it. Find a good financial advisor and transfer your fund into a private pension which you can pick up on when you start to have income again. Pay now in small sums and it'll be easier as you get older.