Can I make a withdrawal?

4shm3x

Hello,

I have a group personal pension scheme with my current employer. I have been with them for 10 months and will be leaving this month.

I'm aware that some pension schemes enable you to take a refund as it were before 2 years, i'm aware that my scheme doesn't allow this.

But I am able to transfer what I have in my pot to another provider.
What I wondered is, is it possible to transfer this to another provider with a scheme that enables me to withdraw before 2 years and then withdraw the amount?

I'm 23 so, i'm at an age I believe where taking £1100 out of my pot won't make a huge difference and I still have time to give myself a decent pension.

Cheers!

sandsy

No, money inside a pension wrapper has to stay inside a pension wrapper (not necessarily the same one) until you reach the minimum pension age. That's currently 55but is due to go up to 57 in a few years time, and will remain 10 years below state pension age.

atush

first of all, if your pot has 1100 in it and you did manage to get the money out, you would not get 1100. Youd have to pay back the tax relief, pay nics (32%) together, then pay back any employers money. You'd be lucky to see 300 of it.

Yes, you should transfer it to your next employer. However no you can't then get it back. You can w/d some/all of it when you are about 57 i think. Maybe 58, will depend on what State pension age is at the time.

4shm3x

Thank you, I thought it may have been some loophole that enabled me to do it. Good job I asked, people wo know more than me!

Southend1

If you only have £1100 in your pension at age 23 you should be adding more not taking it out!

While it's never too late to start retirement planning, if you don't build up a decent amount between the age of 16-30, you will likely be playing catch up for a long time as you lose the benefits of compounding.