Can I cash in my pension?

Mr_MJP

Hello, I am 55 next week and currently unemployed. I have a pension, with deferred benefits with Local Government (LGPS).

Having recently read details on the paperwork regarding my pension, I noted that deferred benefits can only be paid on employer consent grounds in exceptional circumstances - the earliest date being age 55.

The notes also mention that 'please contact your former employer with requests for payment of benefits before the age of 60'.

I rang the Council offices administering my pension fund about this and was told by a gentleman on the phone 'no, we would not do that, you will have to wait until you are 60' - and end of conversation.

I am unemployed as such and desperately need to release the money to move on in life and continue my internet studies. I have recently been accepted as a copywriter but it is early days as such. I plan to work from home as a freelance writer.

I am single, no family or dependants and cannot see the point of sitting around for five more years when knowing my luck I shall 'pop my clogs' the day after my 60th!

For those that say 'go out and find a job for the next five years' - 87 job applications out. Replies 0. That is why the money would give me a start in life.

My question is, what criteria would possibly be needed to convince my former employer to release the funds - and what would constitute exceptional circumstances (aside of ill health)?

atush

This is again the wrong thread for you. You need to ask this question, as your own thread on the main Pensions forum where those in t he know will help you. You are asking about Commencing your pension early, not Cashing your pension in.

But I can say, that you will need the permission of your scheme to retire early. I would not take the jobsworth's word for it, but instead write an old fashioned letter making the inquiry.

Also FWIW, IMHO you should instead try to get another job in the mean time, as it looks unlikely you will be able to take the pension early, and even if you could, it would be reduced for each year taken early which can mean much less pension than you were hoping for.

Check the benefits forum also, to make sure you are getting all you are entitled to.

And the savings board if you need help with your redundancy payment.

dunstonh

http://www.bbc.co.uk/news/business-22468837

Arrests occurring on some of these liberation schemes now.

atush

Glad to hear it, but I am afraid the scam-able wont see it?

dunstonh

atush wrote: »

Glad to hear it, but I am afraid the scam-able wont see it?

They wont and given how difficult it is to get these schemes closed down as many have overseas involvement, they will just pop up, scam people, shut down, move on and pop up again under a new name and leave the authorities behind.

Aegis

LucyJohns wrote: »

Hi,

I had release my pension early, times are tough as we all know and the percentage I got out of my pension (about 9 grand I thinks) really helped, pay off a few debts and I took my littlens on holiday with it. In these times I think its a great thing to do as they then invested my pension fund into alternative "green" investments which made me feel really good. If anyone is interested email me on (removed)[EMAIL="lajohns@hotmail.co.uk"][/EMAIL] and I can pass you the companies details

Regards

Lucy:)

Either you're a part of that company or, I'm sorry to say, you have been conned into committing an illegal pension release. Regardless, no-one should go near the company in question.

SippTechie

Lucy has a bit of a history of registering on forums to make a single post about pension release, offer her email address and then posting nothing else.

You can find another post from Lucy from the 3 May on the netmums forums and I'd guess you can find others if you look further.

If Lucy is confident that the way she has taken cash from her pension is legal, I'm sure we'd all appreciate a post of all the details of the people and companies involved here? Some more information on the mechanism by which it was permissible to pay the cash would also be appreciated. Why only offer it to people who email you, let's have the details here so everyone can read them.

dunstonh

I had release my pension early, times are tough as we all know and the percentage I got out of my pension (about 9 grand I thinks) really helped, pay off a few debts and I took my littlens on holiday with it.

That example is one that would result in an mis-sale complaint being upheld (if it was post 55). Using a pension to pay for a holiday is such a bad idea. If it was pre-55 then its almost certainly unlawful and you can look forward to HMRC catching up with you in about 3 years time with a tax bill.

Seeing as you have given an email and are trying to promote a company, I would hazard a guess that you are not a real consumer but an agent for one of these companies acting unlawfully.

khny61

Help any idea-s I have just been made redundant and have paid in 30 years of my final salary pension - when would I be able to take it ? and should I cancel my AVC's which I pay separately as it will now be frozen

dunstonh

Help any idea-s I have just been made redundant and have paid in 30 years of my final salary pension - when would I be able to take it ?

Are you over 55? IF so, you will need to ask the administrators if they will allow early commencement and if so, at what cost.

and should I cancel my AVC's which I pay separately as it will now be frozen

AVCs wont be frozen. However, if it is an in-house AVC then normally you have to be an active member of the main scheme to pay in. If its an FSAVC then personal pension rules apply (which means you can pay upto £3600 a year in)