Pension Advice?

dannyboy_3

Hi, Please could you give me some advice.I Have paid £1,774 into a personal pension which is not due for another 35 years(I am 30 yrs old now).
I would like to know is there anyway I could get this money out of the pension which I have frozen 3 years ago,even if I had to forfeit a chunk of the money?
I would like to get this money back as I wish to invest it for the future in other ways and I strongly feel that I should have a right to do this as it is my money after all,money which I have been paying in to this pension fund.

Please could you give me any advice on how I can get this money back,as I know that I will never be paying anymore money into this pension again as its to small to be anything worth talking about when im retirement age,and also that I cant afford to increase the payments for to make it anything worth while when I retire.

dunstonh

You cant get the money back. You got tax relief on those contributions and because of that, the Govt puts restrictions on it and one of those is a minimum retirement age of 55 (as it will be shortly).

You do have the right to choose how it is invested and as a pension can be invested in many different ways. Most of the methods tend to mirror those offered by ISAs/OEICS/Unit Trusts. However, from April 2006, there will be further options available.

The amount is very small but you could consider transferring it into your alternative pension fund/provider that you currently use. Even if this is an occupational scheme, they will usually accept transfers in.

weatherwax_2

Hmmm, I'm in a somewhat similar position to the OP. I started a Pension Plan in 1990 which, due to circumstances, became paid-up after 2 years. I was today advised by the company that the small amount accrued (£2,784) is available to me in the form of 25% as a lump sum and that the rest will have to be used for an annuity. The advisor agreed that the annuity would basically be worth damn all, but that there is no alternative.

I'm really cheesed off that £2,088 of my money has to to be paid in to something that will be of no earthly use to me. I will be 60 later this year and could do a lot of things with a couple of thousand pounds.

The fact that I would'nt know an annuity from a hole in the wall does'nt help. :rolleyes:

Pal

Depending on whether you have any other pension schemes, you might want to delay taking the benefits until after April 2006, as it should be possible to take the whole amount as a single taxed lump sum. The new rules have not been finalised yet though, so anything could happen.

dunstonh

As you are 60 later this year and April 2006 is not far behind that, it would certainly be worth waiting as Pal suggests.

weatherwax_2

Thanks, pal and dunstonh. I had heard about the possibility of the entire sum being available next year (through this site, natch!). Interestingly, when I asked about my options the CS agent did'nt say a word about the possible change until I did.

She then hit me with the 'oh yes, that, welllll that's been on the cards for years and it probably won't happen and even if if did it may not apply to you because blah blah blah' scenario. Keeping their customers informed? I think not! If it does happen next year (because I'd be happy to wait), would it apply across the board or would specific company rules apply?

My policy is with Sun Life of Canada.

cheerfulcat

More here -

http://www.friendsprovident.co.uk/doclib/XTAD16.pdf

Pal

The rules could, in theory, override the inland revenue flexibility that is being introduced, but it would be very odd if that were the case.

Talon_Karrde

hmm pensions advice eh??
I am very sceptical about pensions and have been waiting for a thread like this.....
I am a 30yo male, married, with no pension thus far. Employer operates a stakeholder, into which they match contributions up to a % of you salary dictated by age.
Would this be the way to go, or is it worth searching the minefield of other stuff? Like I say, i am very sceptial bearing in mind the recent publicised problems with funds, although i do know that it's a different kettle of fish talking about a 30 year product.
I have almost decided to max a mortgage as far as poss (ie any money that would be allocated to pension, get a larger mortgage) to get up the property ladder asap so as to downsize when needed later in life.

to complicate matters, i was diagnosed with a rare cancer last year. this has been sugically removed, which does offer the chance of a cure, although there is a 60-70% chance of recurrance within 5 years......
i was stupid enough not to take out life cover for the mortgage, so if i go, that's it, my wife will have to work...soooo.....

any advice would be welcome as, bearing in mind above problem, i need to act/make a decision to stick to, this year.

cheers and ta muchly!

Ace

dunstonh

am a 30yo male, married, with no pension thus far

Whoops, leaving it a little late arent you?

Employer operates a stakeholder, into which they match contributions up to a % of you salary dictated by age.
Would this be the way to go,

Erm, free money???? Take it.

I say, i am very sceptial bearing in mind the recent publicised problems with funds, although i do know that it's a different kettle of fish talking about a 30 year product.

There has been no problems with funds. You are mistaking a number of smaller occupational pension schemes with group/individual pensions. This is the problem recently. People hearing a little bit and assuming the wrong thing. The press havent help in this matter at all.

Talon_Karrde

the fact that i have left it late is the reason for my enquiry!
Bearing in mind it's late, would it still be better to put every effort and resource into the stakeholder at work.
Or as i say, try and get as far up the property ladder as possible?
Also, we have a few grand in ISA's. Is it possible to kick start the stakeholder with savings?

cheers for this, pensions have always scared me, and i'm always worried that an IFA will take me for a ride....probably why i have left it so late

thanks for your thoughts to now Dunstoh!