Redundancy Pension Options

i-need-a-dollar_2

Hi All,

Hoping for some advice. I am being made redundant within 3 months.
Our Payroll haveadvised that the pensions company will be in contact to advise what will happen next/ how to transfer. I looked up information and as I have been with the company under 2 years and the fund is <£5k I can either transfer it or take a reduced sum.

Is there any way of getting a better rate than the one offered by the pension management provider as it indicates my pension will only be worth 40-60% of its currently value if I decide to take the cash??

Thanks

atush

No. Because if you take it in cash all you get is the cah you put into it. The other money belongs to your company and the govt as it was tax relief (which you now have to pay if you take it in cash).

In any case, you probably don't want this money and want to transfer it. As a pension it will be worth more when you retire, and it won't be taken into acct when you sign on. So live on your redundancy pay out, and your JSA etc and leave the money where it is.