No longer contributing, pension fund losing money: can I cash it in?

londoner1998

Hi
I'm this question is asked a thousand times, but given my change in circumstances I thought it was worth asking.

I was made redundant in February and I am currently unemployed, looking for work and on JSA.
I just got a letter from the pension provider (Prudential) and what I have in there is actually diminishing, as I am not paying in anymore (I moved pension schemes last year, when I though I would survive the round of redundancies, which I did, but only for about 6 months. That came only to about £1.5K, which I cashed as soon as I finished employment). Now, the value of the pension fund on 5 April 2012 is only £7,107.85, and each month son £3.50 is taken as a plan charge to manage the fund. So I am losing money.

I am no longer with my employer and this money is going down: can I withdraw it and put it in a savings account ? I am not going to spend it, but I am not happy with the idea of losing money on an amount that could generate some interest when put together with some £4k I have in stash, or then use to contribute to whatever pension I subscribe to when I finally get a job.
Any advise welcome...

Lokolo

No you can't put it in a savings account. It is in a pension. It stays there until you start taking it.

jem16

londoner1998 wrote: »

Now, the value of the pension fund on 5 April 2012 is only £7,107.85, and each month son £3.50 is taken as a plan charge to manage the fund. So I am losing money.

Fess of around 0.5% are not really the reason for the fund losing money. It's simply going down as that is what investments do. Sometimes they go down, sometimes up, sometimes stay the same - it's normal.

As Lokolo says it's there for your retirement.

atush

If it isn't growing, perhaps you might change the fund it is invested in.

dunstonh

each month son £3.50 is taken as a plan charge to manage the fund. So I am losing money.

You do realise that the implicit charges on a savings account are typically higher than a pension?

somethingcorporate

Have you read the sticky here?

It's at the top of the forum since the question is asked a thousand times and invariably the answer is the same (unless you are due to die in the near future).