Pension Money and Getting Laid Off

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
4 replies 675 views
Jimmy_the_SaintJimmy_the_Saint Forumite
110 Posts
Hey MSE,

I recently got laid off from my job. I was there 1 day short of a full 12 months, but I was enrolled on the pension scheme (Scottish Widows) from day 1, and I was wondering if I'm able to take back the contributions that I made?

Don't really know anything about pensions, only being 23 year old. Do the company's contributions still count as mine also or not?

Replies

  • kidmugsykidmugsy Forumite
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    Typically, because you were there for less than two years you can claim your money back, and you'll get it after they've subtracted the income tax and National Insurance that you avoided when you made the pension payments. The employer's contributions will be lost to you entirely.

    If you keep the money in a pension fund (either the original or one you transfer it to) the employer's contributions and the tax avoided stay in the fund and, you hope, it will all grow over the years until you start drawing money out in your late middle age.

    Your shout.
    Free the dunston one next time too.
  • dunstonhdunstonh Forumite
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    Note that the two year guide typically refers to Defined benefit schemes. A very small number of defined contribution occupational pensions may have a period where they offer return of your premiums. It does not apply to group personal pensions.

    The mention of SW suggests it may be a Group personal pension.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kidmugsykidmugsy Forumite
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    dunstonh wrote: »
    Note that the two year guide typically refers to Defined benefit schemes. A very small number of defined contribution occupational pensions may have a period where they offer return of your premiums. It does not apply to group personal pensions.

    The mention of SW suggests it may be a Group personal pension.

    I stand corrected.
    Free the dunston one next time too.
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