Frozen pension with Ford and new rules?

daggz68

Hi. I have a frozen pension with Ford Motor Co that I had for 11years. I paid in and they did too.
I heard from my landlord that I could possibly withdraw 25% tax free now? I'm 45 by the way. Is this right?

ScottyLP

Nope, you can't access your pension until your 55, unless your terminally ill with 1 year or less life expectancy

ukjoel

Presume this is the final salary scheme and not the AVC?

If final salary why would you want to pull it out?
The tone there is inquisitive (not challenging) as have been debating this myself since the recent changes to pension were announced.

If AVC they wont let you touch it without terminating the final salary.

atush

If it is a Defined benefit or Final salary pension then the new rules don't pertain to you. And given a DB pension is the best pension going, you should leave it alone and take it when you reach scheme age (which will be older than 55 in all likelyhood).

If you want to pay into a pension now (and you should do) then open a seperate DC money purchase pension. One like this can be taken at 55.

dunstonh

I heard from my landlord that I could possibly withdraw 25% tax free now? I'm 45 by the way. Is this right?

No. Wrong on many counts.

1 - you are not within the retirement age bands (55-75)
2 - you say frozen which indicates it is a final salary scheme (you probably mean deferred rather than frozen). Defined benefit schemes do not get 25% lump sums. They get a lump sum benefit that is designed to largely be similar to the 25% you can get on money purchase schemes. However, it is not 25%.
3 - there have been no rule changes that affect defined benefit schemes.

yangptangkipperbang

dunstonh - could you offer some advice on running a pub please ? :rotfl::rotfl:

daggz68

!!!!!! ok. I'll have to sit it out.