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Leaving Local Government Pension Scheme - options?
katiep_2
Posts: 120 Forumite
Hi there,
I am 26 and in July left local government employment after a year to work in the voluntary sector. I have received my pension information through from the county council about what I can do next, and I'm confused!
We have a few small debts that we are desperately trying to pay off, but it seems like it's a constant uphill struggle. Literally, we JUST earn enough to get by each month plus a little extra, if something unexpected comes along like it did last month (£200 bill for a new exhaust on the car) we are playing catch up for the next month or two. The amount I have in my pension would be exactly the right amount to get these small debts paid off, and get our heads above water to start afresh. So what I want to know is, is there any way I can cash it in. There is a refund of contributions options in the booklet, but you have to have served less than 3 months (I have 12). Is there any way I could transfer the money to a new pension, redeem the contribuition then start again from scratch, or is that money lost until I reach retirement age?
I am 26 and in July left local government employment after a year to work in the voluntary sector. I have received my pension information through from the county council about what I can do next, and I'm confused!
We have a few small debts that we are desperately trying to pay off, but it seems like it's a constant uphill struggle. Literally, we JUST earn enough to get by each month plus a little extra, if something unexpected comes along like it did last month (£200 bill for a new exhaust on the car) we are playing catch up for the next month or two. The amount I have in my pension would be exactly the right amount to get these small debts paid off, and get our heads above water to start afresh. So what I want to know is, is there any way I can cash it in. There is a refund of contributions options in the booklet, but you have to have served less than 3 months (I have 12). Is there any way I could transfer the money to a new pension, redeem the contribuition then start again from scratch, or is that money lost until I reach retirement age?
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Comments
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So what I want to know is, is there any way I can cash it in.
No.
Is there any way I could transfer the money to a new pension, redeem the contribuition then start again from scratch, or is that money lost until I reach retirement age?
Lost until retirement.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Poop! 0 -
No.
Lost until retirement.
And you can only get 25% of it back then, the rest only comes as a taxable income. Remaining capital is lost when you die.
This may not be a factor with a local govt or other final salary pension where the amount you have put in is only a small part of the value - the employer contributes the vast majority.
But it is significant with a personal pension where all the cash is from your own hard-earned.Trying to keep it simple...
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