under 55 can i cash in an old pension??

deeb604

Hi I have an old pension with an employer HSBC that I paid into from 1989 -1993. I had forgotton I'd paid into this pension but out of the blue a couple of years ago I got a letter. It's predicted it will be worth about £500 per year when I turn 55. I work for NHS for past ten years and have a pension with them. I'm 40. When I got the letter from HSBC I asked them if I could cash it in early and was told no yet I keep being bombarded with text messages saying I can cash in an old pension before 55. Obviously I would rather not use an exspensive company and am not sure it's even possible to cash this pension in. Any advice?

dunstonh

yet I keep being bombarded with text messages saying I can cash in an old pension before 55.

They are known scams. UK law does not allow earlier than 55 unless you have a protected scheme age. The pensions regulator and HMRC has been legal action against some of these schemes but they are popping up quicker and moving on again before they get a chance. People that use them are in a for shock when around 3 years later HMRC fine them 55% of their pension value and tell them to reinstate the pension.

Obviously I would rather not use an exspensive company and am not sure it's even possible to cash this pension in. Any advice?

I would say that obviously you shouldnt use a scam.

GhIFA

Simple answer - No, you can't "cash it in". Ignore the text messages, what they are trying to get you to do is illegal, and will end up costing you both your pension fund, and more money when HMRC come after you.

SailorSam

You often hear Paul Lewis talking about these scams on 'Moneybox' i think they discussed them last week again. These firms pop-up and tell you to transfer the pension to them and they'll pay out. But then the firm and your money are never seen again.

http://www.ageuk.org.uk/latest-news/warning-over-early-pension-release-scams/