Frozen pension conundrum

Crewegirl

I took out a private pension nearly 20 years ago and went to work for the NHS a year later, but didn't transfer it over, so it was frozen. The value when I retire will be peanuts, but it would pay some debts off if I could get my hands on it all now. I'm told there is a legal way to do this by starting another pension, transferring it over and then cancelling within a short time period. Does anyone out there know a) if this is correct, b) if this is legal and c) how I go about it if a) and b) both apply, please? Hoping you can help...

Aegis

It's not legal to get money out of old pensions prior to age 55. The method you describe would fail completely, as cancelling the new policy would just require you to either send the funds back to the previous provider or to select an alternative new pension.

Sorry, it's just not what pensions are designed to do.

dunstonh

I took out a private pension nearly 20 years ago and went to work for the NHS a year later, but didn't transfer it over, so it was frozen.

it is unlikely to be frozen as that can only apply to a certain type of occupational pension. It is likely paid up.

I'm told there is a legal way to do this by starting another pension, transferring it over and then cancelling within a short time period.

No. That is BS (as well as being an unauthorised payment and breach of HMRC rules if it did happen). As mentioned above, if you exercise the cancellation rights the new provider will return the money to the previous provider or keep it pending you telling them which alternative provider to use.

thenudeone

The answers are already here: https://forums.moneysavingexpert.com/discussion/3447527

Crewegirl

Thanks, guys. One point, though - does the above still apply after the age of 55? (I was a late starter)
Thanks for your patience.

mania112

From age 55 you can start to take benefits, but not 100% of its value.

25% can be taken tax free at the start, then a government determined rate for annual income.