Under 30 with several small pension pots - cash in?

CraigWatson

Hi all,

I apologise if this has been asked a lot (and I have read the sticky, and skim-read some of the more recent responses).

I am 29, and I current have two pension pots:

The first is one that I unknowingly paid into while on my gap year between 2005 and 2006, and is valued at £100 annually with a lump sum of £304, according to a statement dated April this year.

The second is a workplace pension I was automatically enrolled in at some point last year, and paid into for a maximum of 6 months before I left the company - I'm unsure of its value but I can calculate the amount I paid in by sifting through old payslips.

My question is - given that I'm under 30, would I be able to touch either of these pension pots in any way before the age of 55, either to transfer to a single provider or withdraw is a lump sum?

Obviously I've got no real problems with leaving them as-is, but any information would be appreciated

Cheers,
Craig

dunstonh

Under 30 with several small pension pots - cash in?

You cannot cash in a pension.

The first is one that I unknowingly paid into while on my gap year between 2005 and 2006, and is valued at £100 annually with a lump sum of £304, according to a statement dated April this year.

That is not a value. That is an example projection (in todays terms). Its a guide to what you may get based on a range of assumptions.

My question is - given that I'm under 30, would I be able to touch either of these pension pots in any way before the age of 55, either to transfer to a single provider or withdraw is a lump sum?

You can transfer them into another pension if you wish. You should also look to add more as you are starting to leave it late. You should be into the tens of thousands of pounds by now with your pension but what you say suggests you are way behind. Not critically behind but the longer you leave it, the harder it will become.

PensionTech

The first is one that I unknowingly paid into while on my gap year between 2005 and 2006, and is valued at £100 annually with a lump sum of £304, according to a statement dated April this year.

That is not a value. That is an example projection (in todays terms). Its a guide to what you may get based on a range of assumptions.

Actually it sounds like a DB pension to me. £304 as a lump sum would mean that the value of the pot, if DC, would be £1216 - which would make £100pa amazing value for an annuity. In fact I'm not even sure that SMPIs include lump sums. I think this is probably an old 80ths public sector (or public sector-like) scheme with a 3x lump sum.

But even so, the OP certainly can't cash them in and should be looking to save more.

xylophone

Are you currently in a pension scheme? If so, what kind?

atush

No, you cant cash in your pensions (unless you are dying).

You can leave them where they are or transfer them. Yoou should be wondering about paying more into pensions instead of releasing them.

And you should also consider a 3 months outgoings emergency cash pot, and using your S&S isa allowance.

hyubh

PensionTech wrote: »

I think this is probably an old 80ths public sector (or public sector-like) scheme with a 3x lump sum.

LGPS probably - back in 2006 it was 1/80s FS, 3/80s lump sum with a vesting period of only three months (and also, then as now, with lots of members in low paid, short term jobs). The statement dated to April will likely be his annual preserved benefit statement which (IIRC) is still only a statutory requirement for the LGPS amongst public sector schemes.

Edit: more than probably in fact...

https://forums.moneysavingexpert.com/discussion/5233204