stakeholder - cash in?

dazzer21

Some years ago (I was a bit 'green' to all this then) I bought (was sold) a stakeholder pension with Legal and General. I'm paying something like £130 a month into it at the moment and the payment increases every 12 months. Having looked through the paperwork, I'm locked into this until I retire. Thing is, I could really do with the money that is in there so is there ANY way (through transfers or whatever etc) that I will somehow be able to get to this? ANY advice is appreciated. Many thanks in advance.

Dazzer!

Pal

On the basis that you are 35 years old, you will not be able to get the money until you are aged 55 at the earliest.

See http://forums.moneysavingexpert.com/showthread.html?t=33569

You say you are "locked in", which cannot be the case. There might be financial reasons for not being able to transfer out, but you can stop paying contributions (not recommended) or start paying to another pension policy any time you like.

dunstonh

L&G stakeholders are transferable without cost like all stakeholders and L&G have a range of funds you can switch between. The annual increase can be cancelled at any time and the premium adjusted to suit your budget.

There isnt much point saving for retirement if you are going to spend the money before you get there

dazzer21

The whole idea of trying to get to the funds is to use it as part deposit on a second property - THAT would then be my pension!

dunstonh

dazzer21 wrote:

The whole idea of trying to get to the funds is to use it as part deposit on a second property - THAT would then be my pension!

Wait until april 2006 and you will be able to do that. However, relying on property as your only source of income in retirement should be considered as risky as investing on the stockmarket.

Katgoddess

Wait until april 2006 and you will be able to do that. However, relying on property as your only source of income in retirement should be considered as risky as investing on the stockmarket.

What happens in April 2006?

I've had a stakeholders pension for the past couple of years, but there isn't much in it. I'm fairly young (25), thats my excuse.

I've just been offered a final salary pension scheme from my company, which is obviously the better option, so I won't be needing the stakeholders pension anymore.

So can I take the money out in 2006?

Or should I just invest it in something high risk seeing as my company pension *should* be safe.

I've got a meeting with the banks finacial advisor next week, but I would like other people opinions.

dunstonh

What happens in April 2006?

Pension "A" day or pension simplification as it is also known as. A whole range of changes are coming in to the pension products. Mostly favourable to be honest.

So can I take the money out in 2006?

No.

Or should I just invest it in something high risk seeing as my company pension *should* be safe.

Or transfer it into the final salary occ scheme?

I've got a meeting with the banks finacial advisor next week, but I would like other people opinions.

Thats unfortunate for you. It would be interesting to see what sort of information the banks have passed to their employees regarding pension simplification. Probably very little as most banks only offer one pension product rather than the full range.

Katgoddess

Thanks, still haven't got around to seeing the bank.