Can I cash in old pension?

1079jb

Hello all,

Hoping someone may have some helpful advice, as struggling to find any consistent answers on the magical internet!

I paid into my old works pension scheme between 2001 and 2003. Then left there employmnet, moved cities, employees etc, and have been employed in teaching pretty much ever since and paying into my teachers pension scheme.

My question is what has happend to this money and can I have it now? I have managed to trace the private pension provider I paid into all those years ago, but not sure how to approach them and what I should be asking for or entitled to by law?

Ive heard about early release and frozen pensions, but dont want to have to give a company a cut to get it for me if its something I can easily do myself.

This website is great for templates for dealing with such companies and money claimback issues, so was wondering really if anyone knew where I stood legally, and advice on tackling them?

Many thnaks for any responses.

jem16

1079jb wrote: »

My question is what has happend to this money and can I have it now? I have managed to trace the private pension provider I paid into all those years ago, but not sure how to approach them and what I should be asking for or entitled to by law?

If you are 55 or over, you can access 25% of it as a lump sum and the rest as a pension. If you are under age 55 you cannot access it at all.

Ive heard about early release and frozen pensions, but dont want to have to give a company a cut to get it for me if its something I can easily do myself.

You'll be giving them more than a cut if you use any of these companies. It is illegal and would result in a hefty fine years down the line and the money paid back into the pension.

If you had read this sticky first, you would have discovered all this for yourself.

https://forums.moneysavingexpert.com/discussion/3447527

This is what happened to someone who did just what you are suggesting.

https://forums.moneysavingexpert.com/discussion/4304609

1079jb

Thanks for your response, and I am new to the site so was not aware of "sticky notes" so thank you for the link.

So to clarify, if I want this money I need to contact the old pension company and get it moved over to my new pension scheme? or am I just completly misunderstanding how pensions work!

Thank you for your patience and response hopefully!

Linton

1079jb wrote: »

Thanks for your response, and I am new to the site so was not aware of "sticky notes" so thank you for the link.

So to clarify, if I want this money I need to contact the old pension company and get it moved over to my new pension scheme? or am I just completly misunderstanding how pensions work!

Thank you for your patience and response hopefully!

You wont be able to access the money as cash. But you may be able to have it transferred to your current pension (which I assume is Final Salary) and buy extra years. If it's possible, this may or may not be a good idea depending on the number of years you get for your old pot. If its not possible, or not worthwhile, there may well be nothing wrong with leaving the money where it is. Assuming its a money purchase scheme rather than final salary it should (hopefully) continue to increase in value with investment returns.

So I suggest that you make sure you have the latest details of your old pension and then talk to your current pension people as to whether a transfer is possible and what you would get. If you wanted to proceed I believe the current pension people would handle the transfer from the old pension.

jem16

1079jb wrote: »

So to clarify, if I want this money I need to contact the old pension company and get it moved over to my new pension scheme? or am I just completly misunderstanding how pensions work!

If you have been in the Teachers' Pension Scheme since 2003 you won't be able to transfer it into this scheme as transfers must be completed within 12 months of joining.

What kind of scheme was the old works pension? Was it final salary or money purchase?

atush

If it was an old FS scheme yo may be best leabing it there. Like the teachers scheme it is a good one.

If it isn't, you can leave it there, or open a personal pension or SIPP (ie where you invest the money yourself) and transfer the old pension to it.

So, contact the company, ask about your pension, give them your current details, then ask them for a statement.