Can I cash in my pension?

atush

He would need to speak to standard life, but I haven't heard of personal pensions with a starting age of 67. Nor work ones really.

Who did he work for? Has he got the scheme booklet? If not, have him ask for a copy.

Hellven

I am 55 (almost 56) and I have applied to cash in my Stakeholder pension which is currently valued at just over £11k but my pension provider is giving me two options and neither one is the payment of the full amount.

They offer me:
a) Open Market Option - this means I will be paid 25% of the total but have to transfer the balance to another insurer for the purchase of a compulsory purchase annuity only
OR
b)Transfer the full retirement fund to another insurer with no tax free lump sum as it will be paid by the receiving insurer.

The company that holds my pension is not the same company I made the original pension agreement with.

I have not made any payments into the pension scheme for about 6 years and the employer/company I entered the scheme with is no longer in existence.

As my pension is below £18k why will they not offer me the option to take the full lump sum and what is a compulsory purchase annuity?

RichandJ

Because you have to be 60 to exercise full triviality.

dunstonh

I am 55 (almost 56) and I have applied to cash in my Stakeholder pension which is currently valued at just over £11k but my pension provider is giving me two options and neither one is the payment of the full amount.

You cannot cash in a stakeholder pension.

The company that holds my pension is not the same company I made the original pension agreement with.

A change of logo does not mean the company has changed. Almost certainly, the pension is identical to what it was when you bought it bar the logo.

As my pension is below £18k why will they not offer me the option to take the full lump sum and what is a compulsory purchase annuity?

The annuity is what you buy with the pension when you wish to start your retirement income. Typically you do this when you retire. Not before.

Hellven

dunstonh wrote: »

You cannot cash in a stakeholder pension.

A change of logo does not mean the company has changed. Almost certainly, the pension is identical to what it was when you bought it bar the logo.

The annuity is what you buy with the pension when you wish to start your retirement income. Typically you do this when you retire. Not before.

Thank you for your reply.

portchieboy

I retire in 2 yrs, at 60.

I already draw a fs pension which I took earlier this year with no reduction, and did not take a lump sum, deciding that I wanted the income at maximum, as I am confident of outliving the tipping point, around 12/14 years.

I have another fs pension, another employer, which I will probably take at 65. Question, I know that you can take 25% of your pension pot as tax free cash. Does that mean that I could at 65 take 25% of the original total of both schemes, or only the later one?

Thanks

Linton

portchieboy wrote: »

I retire in 2 yrs, at 60.

I already draw a fs pension which I took earlier this year with no reduction, and did not take a lump sum, deciding that I wanted the income at maximum, as I am confident of outliving the tipping point, around 12/14 years.

I have another fs pension, another employer, which I will probably take at 65. Question, I know that you can take 25% of your pension pot as tax free cash. Does that mean that I could at 65 take 25% of the original total of both schemes, or only the later one?

Thanks

You cannot take the 25% once you have started drawing the pension.

jem16

portchieboy wrote: »

Does that mean that I could at 65 take 25% of the original total of both schemes, or only the later one?

Thanks

You will only be able to take 25% of the later one.

You chose the higher income for the first one in place of the lump sum.

bluey1234

I am a long term lurker, as with most things I can eventually find an answer if I look hard enough.

However after reading through this thread I am really confused...

I am absolutely sure my OH and I fully cashed in our police pensions :eek: of 5 and 4 years service respectively, back in our heady youthful days in 1983 (our early twenties)! - one of the many absolutely foolish financial things we have done together!- (we needed some money to travel and I cannot remember how much we got, but not too much)

I am sure this was possible back then, and we now have no police pension at all from then :eek: Surely the police scheme rules must have changed since?- obviously for the better as given a choice now I would never have done it - total wallies I know!

bluesydave

Hello,

I'm 44 years old, I have approximately £20k in a private pension.

I suffer from severe depression and lost my job in 2010, and am unable to work at present.

I am in danger of losing my home due to mortgage arrears. I've put the house up for sale and am going to live in my camper van.

With the recent changes to benefits policy, I'm finding it difficult now even to get ESA, or mortgage interest payments from the gov. They seem to be quite merciless.

If I could access my pension fund, I would be able to avoid losing the house and/or resolve a lot of my financial problems.

On top of this, I have serious doubts that the economy will recover, and believe financial collapse is imminent. Pension funds will be worthless if this happens.

Is there no way then, for me to cash in my pension now, due to my circumstances?

Thanks for your help,

Dave.