Private pension

Sophie_the_cat

I've got a very small private pension that I haven't paid into for about 20 years (I was persuaded to contract out of SERPS in the late-80s and stopped contributing when I started a new job, which had a final salary scheme, which I joined in 1994). It's worth £29,773.35 now, which will give me a pension of £1,400 a year at age 60 (I am 48 now).

I'd much rather have the £29k now rather than bother with £1400 a year, especially since I have other pensions worth a lot more (two final salary schemes and two money purchase schemes). Can I get my cash out?

p00hsticks

Sophie_the_cat wrote: »

I've got a very small private pension that I haven't paid into for about 20 years (I was persuaded to contract out of SERPS in the late-80s and stopped contributing when I started a new job, which had a final salary scheme, which I joined in 1994). It's worth £29,773.35 now, which will give me a pension of £1,400 a year at age 60 (I am 48 now).

I'd much rather have the £29k now rather than bother with £1400 a year, especially since I have other pensions worth a lot more (two final salary schemes and two money purchase schemes). Can I get my cash out?

Not until you're 55 - and you'll pay tax on 75% of it

atush

Is there any valuable guarantees attached to this?

If not, why not just transfer it to one of your DC schemes?

How much income will your 2 DB pension pay each year?

Income is income. Doesn't matter if it is small, what matters is the total income.

jamesd

There's no requirement to buy an annuity paying £1,400 a year. You can transfer the money to any other personal pension that you have if you like and you get the full range of options from the pension freedom changes that start on 6 April 2015.

The "protected rights" aspects of these were abolished a few years ago and now you get total freedom without the restrictions.

dunstonh

It should also be noted that projections use a range of assumptions. Assumptions that may be understating or overstating the likely outcome (more likely to be understating with current figures). Even if there are GARs or other guarantees on the plan, these will not be taken into account in the projections.