Can I cash in my pension?

Aegis

atush wrote: »

That flexibility comes at a cost- and in the case of redundancy will keep you from getting means tested benefits. But the pension would remain untouched.

We saw this very issue highlighted recently when some poor guy came onto this forum recently asking how he could avoid having all his ISAs counted towards his personal savings for means-tested benefit purposes. He'd been using ISAs instead of pensions for his retirement plans, and sadly found out one very good reasons why ISAs should not be used exclusively for such a goal.

doxfordlad

I am coming upto 57 yrs old and had applied for the value of my company pensions as i was thinking of cashing them in.
i have been in 2 of the company pensions from 1 /2/1999 to 29/2/2004 then a final salary pension from 1/3/2004 to date quote is for 1/9/2012
i have been given the values for both, then in the post today i have been informed by the trustees that ,
" An initial review of the market has confirmed that your current **** fund 1/2/99 to 29/2/2004 is not sufficient to cover the minimum pension that has to be provided under the rules of the scheme.Regrettably, this means that the trustees cannot allow early payment of your pension at this time, either of your **** benefits or final salary benefits. "
having contributed to pension schemes for the last 13 + years have been told this.

can i appeal as the 1st pension is closed now and the value is reducing yearly come 2020 it will probably be worth nothing.

mania112

doxfordlad wrote: »

I am coming upto 57 yrs old and had applied for the value of my company pensions as i was thinking of cashing them in.
i have been in 2 of the company pensions from 1 /2/1999 to 29/2/2004 then a final salary pension from 1/3/2004 to date quote is for 1/9/2012
i have been given the values for both, then in the post today i have been informed by the trustees that ,
" An initial review of the market has confirmed that your current **** fund 1/2/99 to 29/2/2004 is not sufficient to cover the minimum pension that has to be provided under the rules of the scheme.Regrettably, this means that the trustees cannot allow early payment of your pension at this time, either of your **** benefits or final salary benefits. "
having contributed to pension schemes for the last 13 + years have been told this.

can i appeal as the 1st pension is closed now and the value is reducing yearly come 2020 it will probably be worth nothing.

So, the 1st pension is a money purchase - the one you say is reducing each year?

In theory it can only be going down each year if it's held in a cash fund and the contract is expensive... over time it's proven that all other investments will increase.

The other is final salary and you've been told they are now no longer able to offer early retirement?

They are able to do this, but it's in your interest they do, because their kitty is running low and they need to cut costs (you'd rather they stop early retirement while you're still working than go completely bust when you have retired and you have to sort out the claim to get the money from the government, a real headache).

atush

Whatever the rules of each pension, you cant cash either of them in as you say. You only can, within their rules, commence or start taking your pension.

rickyshaw

Hiya, I'm 56 and have a small works pension of 13,000 can I take it as a lump sum at this age?I know I'll have to pay tax on 75%.

dunstonh

rickyshaw wrote: »

Hiya, I'm 56 and have a small works pension of 13,000 can I take it as a lump sum at this age?I know I'll have to pay tax on 75%.

You cannot exercise the trivial pensions option until age 60. Even then it is only if ALL of your pensions come to an equivalent combined value of £18,000 or under.

rickyshaw

Hiya. thanks for the answer to my question, if I take out 25% of my pension fund can I freeze the rest and take it as a lump sum at 60? I only have the one pension at £13,000

sistafromanothermista

Hi all, i have question (i hope hasn't already been asked)
My Husband took out a pension when he first started employment (he's now 40) which he hasn't paid into since 1999/2000 ish. He only remembered about it when we were sorting through some very old files the other day.
It's with a company called Phoenix i think. On their website it details 'cashing in' your policy but doesn't give an age.
Does the fact that this is now dormant (as in no payments have been made to it for a number of years) mean he may be able to cash it in? or does he still have to wait until 55 to do anything with it?

Thanks....

dunstonh

Does the fact that this is now dormant (as in no payments have been made to it for a number of years) mean he may be able to cash it in?

Pensions do not go dormant. So, no.

It's with a company called Phoenix i think. On their website it details 'cashing in' your policy but doesn't give an age.

Their website details encashment on plans that can be encashed. Not plans that cannot be.

or does he still have to wait until 55 to do anything with it?

A pension is for retirement as the name suggests. He can access some of it at 55 but typically it is best left until retirement (or built into his other retirement plans).

spudilydoodah

I have lived in Ireland for 21 years and have a small Shropshire County Council pension - about £600 a year and and £1800 lump sum. I am now 47 and would like to cash it in. I have read if you have lived outside the country for 5 years this is possible.
Could someone give me a few more details?

Thanks