pension

benson2103

My husband spoke to his pension company to ask if he could have some of his pension, but was told (in not so many words) that they had run out of money. What can be do.

xylophone

My husband spoke to his pension company to ask if he could have some of his pension, but was told (in not so many words) that they had run out of money. What can be do.

Is your husband already drawing his pension or is he just about to do so?

Is this an occupational pension scheme or a pension policy with an insurance company?

TH1878

benson2103 wrote: »

My husband spoke to his pension company to ask if he could have some of his pension, but was told (in not so many words) that they had run out of money. What can be do.

Who is the pension company? How old is your husband?

dunstonh

but was told (in not so many words) that they had run out of money.

That is not a response that fits with any type of pension generically unless he was already in income drawdown (which has been available for a decade and not a recent change despite media coverage) and he drawn all the money out.

Pension providers do not run out of money. However, pensions can do once you have drawn it all out and there is nothing left. So, in the simplest terms, and based solely on the very limited info you have given, it would suggest your husband has drawn all the money out of it and nothing is left. The same as drawing all your money out of a savings account or a bank account or any investment. you can only get what you have in it. When its gone its gone.

What can be do.

Tell us more about the pension. What type is it? Has he already been drawing on it?

benson2103

My Husband is 61, has never touched his pension, and he is not receiving any of his pension. He just asked about taking out the 25%, and was told that it was not possible at the present time and was basically told there was no money to give. My Husband did ask if he could use them and she replied "well yes". What should be do.

benson2103

He opted out of serps many years ago, it seems that it was passed from one reputable company to another well known one.

xylophone

Are you able to state the type of policy and the provider?

In particular, is it a S32 policy?

dunstonh

He just asked about taking out the 25%, and was told that it was not possible at the present time and was basically told there was no money to give.

What type of pension is it?

1 - it could be that the existing pension cannot facilitate income drawdown (which is what your husband is asking them to do) - e.g. stakeholder pensions cannot do income drawdown. Most pensions from over 5 years ago cannot.
2 - it could be that his type of pension doesnt allow it because of contractual reasons (such as a section 32 buy out bond) or its not that type of pension (defined benefit scheme)

I suspect from what you are saying, it is number 1. An old style contract that doesnt allow income drawdown. If so, it would need transferring to one that does. Getting the info in dribs and drabs is leading us to guess though.

Freecall

'Husband is 61'

'...taking out the 25%.....not possible.....no money to give'



DB surely.

.

xylophone

On the information given, it's impossible to say.

jamesd

This fits what I'd expect from a pension with a Guaranteed Minimum Pension when there is not enough money in the pot to fund the GMP. In this case the pension firm would have to make up for any shortfall in the income level. In such a case firm wouldn't pay out any lump sum because all of the money and more is needed to provide the legally required income.

GMP is broadly an obligation to to pay a set amount of pension income at a set age and comes from money from being contracted out of the additional state pension (SERPS or S2P).

We really need to know more about how he acquired this pension, how it was funded, what its' name is and whatever else you can tell us to help us narrow down the possible situation.