mislead into thinking i couldnt cancel pension, when i could

abooth0807

i was mislead into thinking i couldnt cancel my pension and now iv missed the time frame to get a refund on my contributions
24 months@£50pm= £1200

i joined my salary sacrifice pension a little over 3 years ago. iv recently stumbled across a cancellation policy for this pension
it states that when canceled within certain time frames from thedate of taking the pension out im entitled to a refund. between 3 months and 2 years i get all my contributions refunded. after 2 years my options are to leave the pension pot till im 55 (im 23) or transfer to another company/pension pot. this is where i need help, about 1.5 years into the pension contributions i enquired with my HR team about cancelling my pension as the 50 per month would help with my debt, i was told i couldn't cancel, i could only freeze the payments for so many months. is there anything i can do here? maybe explain my case to the pension company? all advice appretiated

PeacefulWaters

I'm not sure you were ever able to recover the money you had paid in unless you ceased employment.

Assuming I'm wrong, can you prove the conversation took place? If so, are you prepared to pursue a grievance procedure?

You were always able to stop contributing (although this would cost you any new matching contributions from the firm).

Because of the way salary sacrifice works a £50 contribution would only free up £34 a month if you ceased paying it.

Me? I'd carry on with my pension contributions and cut back elsewhere to better manage my debts. You might benefit from visiting the Debt-free Wannabe part of the forum for help.

Southend1

If you salary sacrificed then you didn't make any contributions to the pension so there is nothing to refund to you. The employer made all the contributions in return for you giving up an amount of your salary.

If you stop paying into your pension then what are you planning to live off when you retire?

abooth0807

the way i understood and how the policy explains it, i make a 4% contribution which my work matches, but my contribution comes out before my NI comes out of my wage so im saving a little bit.
when i originally enquired about cancelling the pension is was more for the lump sum id already saved with them, and the cease of payments would be the extra bit of ease up until i got back on my feet.
the job is never really a long term career, i joined the pension after speaking to a once retired colleague who had to work because he never planned in a pension when he was my age.
if im reading the policy right i think its a 'if you change your mind within 2 years' you can cancel the pension and get what you contributed back, too late for me though, ill just stick with paying it

thanks for the help and ill have a look at that forum section about debt

chucknorris

abooth0807 wrote: »

after 2 years my options are to leave the pension pot till im 55 (im 23) or transfer to another company/pension pot.

In 2028 the age at which you can access your pension will be increased to 57, and it is possible (even likely) that it will be put back further at some point in the future.

Whilst I appreciate that you may have preferred other uses for your money, it isn't as if you have wasted it, pensions (especially via salary sacrifice) are good value.

jem16

abooth0807 wrote: »

the way i understood and how the policy explains it, i make a 4% contribution which my work matches, but my contribution comes out before my NI comes out of my wage so im saving a little bit.

As such you are giving up 4% of your salary which the employer pays straight into the pension for you. This is why there is the NI saving as you have less salary.

If it was a 4% contribution from you and paid from gross salary, NI would still be chargeable.

when i originally enquired about cancelling the pension is was more for the lump sum id already saved with them, and the cease of payments would be the extra bit of ease up until i got back on my feet.

The refund would only ever be for leaving the job.

However if it had been possible that £1200 would have attracted 20% tax and 12% NI so would have become £816 so not really such a great amount.

the job is never really a long term career, i joined the pension after speaking to a once retired colleague who had to work because he never planned in a pension when he was my age.

Very sensible and all the more reason to stay in it.

if im reading the policy right i think its a 'if you change your mind within 2 years' you can cancel the pension and get what you contributed back, too late for me though, ill just stick with paying it

Very unlikely but we don't have the T&C in front of us.