Cancelled My Work Pension

Argie_wizard

Hi all,

I'm new to this forum so if this has already been posted and answered then I do apologise.

Recently had debt issues etc and thought a good way to get out of that would be to cash in a work pension with over 5k in after nearly 4 years service. Now I know nothing about pensions and really wish I'd read up more before opting out after 3.75 years of paying into it.

Anyway it's all done and I've opted out so the payments no longer go there and clearly I haven't had the 5k paid out either. Which I now know isn't possible. My concern is, where does that 5k go that I've already paid in? It's literally keeping me awake at night. I thought I'd receive a letter from my employer or pension provider but nothing.

Any help would be greatly appreciated.

Thanks

molerat

The money stays in the pension fund increasing in value in line with whatever it is invested in until you withdraw it after age 55 or transfer into another scheme.

bigfreddiel

Argie_wizard wrote: »

Hi all,

I'm new to this forum so if this has already been posted and answered then I do apologise.

Recently had debt issues etc and thought a good way to get out of that would be to cash in a work pension with over 5k in after nearly 4 years service. Now I know nothing about pensions and really wish I'd read up more before opting out after 3.75 years of paying into it.

Anyway it's all done and I've opted out so the payments no longer go there and clearly I haven't had the 5k paid out either. Which I now know isn't possible. My concern is, where does that 5k go that I've already paid in? It's literally keeping me awake at night. I thought I'd receive a letter from my employer or pension provider but nothing.

Any help would be greatly appreciated.

Thanks

Have you asked for a statement? fj

bigfreddiel

When you joined the pension scheme were you told anything about it? Were you told you couldn't access it till you were at least 55?

If you were did you understand what you were told, or did you just skim read it and sign up?

There is no criticism here, until I reached my mid 50's I took no interest, just paid in, stashed all the pension bumf in a folder and forgot about it. Anything I did read was complete gobblydiegook. This isn't our fault. It's human nature, and any blame lies with the pension provider. They CAN provide clearer information written in plain English. They choose not to claiming it isn't possible and we the customer just goes along with it.

So, the only answer is to learn as much about pensions now and not ten years before you retire.

Right now imagine you are retiring next week. Ask yourself were your income is coming from. Is it going to increase each year - index linked. How much will you need and so on.

Good luck fj

Argie_wizard

That is fantastic help thanks. I'll ring the provider and ask them to provide a statement. I knew I was signing up to the pension and want to continue this in about 12 months time once this debt is cleared.

I'm very naive when it comes to pensions so I'm going to do a bit more research and maybe even request I start the payments up again but at a smaller amount of possible? I don't know if this can be done at a nominal amount instead?

It's an absolute mine field and I appreciate all of your help!!

bigfreddiel

Angie, well done, it is mind boggling boring and tedious, but plough through all the jargon, ask for things to be explained in plain English, don't be afraid of asking stupid questions. There is no such thing as a stupid question, only stupid answers.

Persevere and you'll get there cheers fj

xylophone

Have you been given any information about your pension? Scheme booklet?

Bootsox

Does your employer match your contributions in any way (i.e. free money)?

atush

Yes, tell us how much your employer paid into your pension?

And going forwards, before you stopped the pension, did you do any research into Other parts of MSE?

Like the debt free board? Where you post an POA and others will help you lower your outgoings so you can steamroller your debt (ie paying the min on all but the highest % interest one til it is gone then hit the next etc)?

You stopped the pension because it was easiest. But it wont the the best solution long term, so do the hard work. Lower your outgoings, and increase your income.