Cashing in an appropriate pension plan

marriottg

2 years ago I found out that I had an Appropriate Pension Plan with Standard Life with roughly £12,000 in the pot (I had forgotten all about it to be honest).I contacted them to see if I was able to cash it in but they said no.I was recently informed that rules had changed in 2012 and there were companies offering to do the legwork and get my money for me.Is this true? or is it likely to be a futile and expensive option?

mania112

I assume you're under age 55?

No you can't touch it - I can't think which rule was introduced in 2012 that might make you think it's now possible (abolishment of contracting out?).

molerat

You can only "cash in" a pension if you are over 60 and the pension is worth less than £2k or the total value of all pensions is less than £18k. The 2012 change was with regard to the £2k limit. The only other way to access the money is through an illegal scheme where you will receive a fraction of the value and end up with a hefty tax bill often higher than the amount you received.

dunstonh

was recently informed that rules had changed in 2012

A couple of minor tweaks. No major changes. Instead of age 60+ triviality being 1% of the lifetime allowance, it was put at a fixed £18,000.

and there were companies offering to do the legwork and get my money for me.Is this true?

No. Unlawful schemes and scams (of which there are plenty - and most cold call or advertise on the web) will tell you things but you will end up facing the HMRC fine of 55 % of your pension pot. Some of those schemes/scams may also leave you with little or no pension fund but you still end up with the fine.

marriottg

Thanks to everyone for their help.I think I'll leave it alone.

xylophone

http://pensions.practicallaw.com/7-504-9837
http://www.eversheds.com/global/en/what/articles/index.page?ArticleID=en/Pensions/Pensions_speedbrief_Protected_rights_abolished_from_6_April_2012

Had you considered a transfer into your existing pension scheme (assuming you have one and a transfer is possible)?

marriottg

I'll look into my current plan and attempt to get it transferred over,thankyou.