We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Cancelled My Work Pension

Options
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

Comments

  • molerat
    molerat Posts: 34,522 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    bigfreddiel Posts: 4,263 Forumite
    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
    bigfreddiel Posts: 4,263 Forumite
    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
    Argie_wizard Posts: 13 Forumite
    Seventh Anniversary 10 Posts Name Dropper Combo Breaker
    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
    bigfreddiel Posts: 4,263 Forumite
    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
    xylophone Posts: 45,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Have you been given any information about your pension? Scheme booklet?
  • Bootsox
    Bootsox Posts: 171 Forumite
    Does your employer match your contributions in any way (i.e. free money)?
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.