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best place pension deal

baggy2359
Posts: 2 Newbie
im just turning 55, I have 2 pensions, as I am now a single working dad with a 6 year old (yes at my age ) I would like to cash one in , where can I get the best deal and advice? thx
are single dads treated differently 7 votes
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Comments
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im just turning 55, I have 2 pensions, as I am now a single working dad with a 6 year old (yes at my age ) I would like to cash one in , where can I get the best deal and advice? thx
You don't cash it in - you start withdrawing an income from it.
However age 55 is very early to take a pension and you are not likely to get a good rate.
What sort of pension is the one you want to take?0 -
im just turning 55, I have 2 pensions, as I am now a single working dad with a 6 year old (yes at my age ) I would like to cash one in , where can I get the best deal and advice? thx
You cant cash in your pension, unless it is less than £2K or all your pensions total less than £18K. In any case you need to be at least 60 to do this. Or if you are death's door.
You can take 25% tax free lump sum and start an annuity or start drawdown. However it may well not be a good idea to do this at your young (to take a pension) age.
More information would help. How much is it? Is it a defined contribution or final salary? What are you trying to achieve?0 -
you can't cash it in.
Are you still working? Do you contribute to your current employer's pension? Is the child's mother contributing? What kind of pension? FS or money purchase?
If you take a pension now, at such an early age, will you be able to retire?0 -
yes, i was treated differentlyas I said im a single dad , Im doing my best to hold down 2 part time jobs , about 30 hrs total, however money is tight hence the reason for trying to get a bit of cash from the small pension I have , its not worth a lot , £5,700 in all , the other pension is a military one and is worth good money after 20 years service and I have no intention of touching it ,0
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as I said im a single dad , Im doing my best to hold down 2 part time jobs , about 30 hrs total, however money is tight hence the reason for trying to get a bit of cash from the small pension I have , its not worth a lot , £5,700 in all , the other pension is a military one and is worth good money after 20 years service and I have no intention of touching it ,
So you have a pension worth £5700 and a military pension worth n X £100000 which puts you well above the limit for cashing in pensions.
If your military pension + your state pension are greater than £20K you could in theory get a lump sum from it by going for Flexible Drawdown and then withdrawing the whole lot. However whether anyone would be willing to do that for you for such a small sum, I dont know. It would probably cost at least £100-200 in fees and of course the lump sum above 25% would be taxable.
The bad news for you is that you cant do it until pensions of >£20K are actually in payment.0 -
The most you can get today is 25% as a lump sum and a tiny income from the rest.
I realize you are a single dad, but was assuming as you haven't said, that there is a mother out there somewhere who should be paying CS to the custodial parent.
Have you looked to full time work instead for more pay or for more hours than 30?
Have you been to the CAB to see you are getting all the tax credits and other benefits due to you?0
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