DC Exit Early -Redundancy.

Dandytf

Not going into detail-though posted elsewhere via mse forums.
Pending unexpected Redundancy March.
As much as I enjoyed increasing DC cont's  since 2014 -what is the possible loss if I need to in effect 'Withdraw' DC Pension.
Is this pro Rata or heavily reduced.
I have been advised of standard options -Freeze/transfer or withdraw.
t.i.a.

Marcon

Dandytf said:

Not going into detail-though posted elsewhere via mse forums.
Pending unexpected Redundancy March.
As much as I enjoyed increasing DC cont's  since 2014 -what is the possible loss if I need to in effect 'Withdraw' DC Pension.
Is this pro Rata or heavily reduced.
I have been advised of standard options -Freeze/transfer or withdraw.
t.i.a.

The pension won't be frozen - it will remain invested and continue to grow (or drop!) depending on the funds in which you have chosen to invest your pension savings.

If you access your DC benefits early, the 'pot' is neither pro rated nor heavily reduced: it is simply whatever is in the pot at the time you decide to start taking your benefits. Be careful if you choose the drawdown option - if you 'flexibly access' anything more than the 25% tax free lump sum, you will be limited to a maximum of £4,000 contributions (including any tax relief on personal contributions + any employer contributions) per annum in the years to come.

Dandytf

Can't thank you enough Marcon.
Iv'e learned lots of essential advice via mse and tel support lines in view of moving forward post redundancy.
I thought to continue to grow I'de have to be making contributions after I leave work, though that option isn't valid from Redundancy date.
Are there other options to withdraw full pot, though I am applying for jobs online, very limited due to Part Time requirements/M.S. , if successful I'de use transfer to a new Pension.
maybe that 4K max yearly option, could become useful.
thanks appreciated.

Marcon

Dandytf said:

I thought to continue to grow I'de have to be making contributions after I leave work, though that option isn't valid from Redundancy date.

Sounds like this is a company (occupational) DC scheme with trustees - does that ring any bells?

Are there other options to withdraw full pot

If it's a company scheme (as opposed to a personal pension), then it depends on the rules of the scheme. 

I am applying for jobs online, very limited due to Part Time requirements/M.S. , if successful I'de use transfer to a new Pension.

You could transfer to a new pension scheme whether or not you get another job. You would need to set up your own personal pension plan (possibly a SIPP - have a look at previous threads on this board for some suggestions) to receive the transfer. 

Dandytf

@Marcon
This DC is company scheme, I have been advised Trustees will write to me with Rules.Options.
I don't have any continuous income after redundancy pay is exhausted, though I'll certainly consider a new Private SIPP- or if hat miracle job appears, then a new workplace scheme.
Thanks

Albermarle

Dandytf said:

@Marcon
This DC is company scheme, I have been advised Trustees will write to me with Rules.Options.
I don't have any continuous income after redundancy pay is exhausted, though I'll certainly consider a new Private SIPP- or if hat miracle job appears, then a new workplace scheme.
Thanks

You have not mentioned your age . Presume you are 55, or over , otherwise normally there are no options to withdraw.

bluenose1

If you haven’t already I would also be checking what benefits you may be entitled to before withdrawing your pension pot. Would you be entitled to JSA for 6 months? Not sure what other benefits there are. Universal credit? 

Dandytf

Albermarle said:

Dandytf said:

@Marcon
This DC is company scheme, I have been advised Trustees will write to me with Rules.Options.
I don't have any continuous income after redundancy pay is exhausted, though I'll certainly consider a new Private SIPP- or if hat miracle job appears, then a new workplace scheme.
Thanks

You have not mentioned your age . Presume you are 55, or over , otherwise normally there are no options to withdraw.

47 until early March.
I thought there were one option to withdraw due to Redundancy,
thanks

tacpot12

Dandytf said:

Albermarle said:

Dandytf said:

@Marcon
This DC is company scheme, I have been advised Trustees will write to me with Rules.Options.
I don't have any continuous income after redundancy pay is exhausted, though I'll certainly consider a new Private SIPP- or if hat miracle job appears, then a new workplace scheme.
Thanks

You have not mentioned your age . Presume you are 55, or over , otherwise normally there are no options to withdraw.

47 until early March.
I thought there were one option to withdraw due to Redundancy,
thanks

Definitely not. You cannot withdraw anything until you are 55 unless you cannot work in your current occupation because you are too ill to do so, or are terminally ill with a life expectancy of no more than 12 months.

Your options are to leave the money in the existing Pension for when you are 55, or to transfer it to another pension where it must remain until you are 55. 

Marcon

tacpot12 said:

Dandytf said:

Albermarle said:

Dandytf said:

@Marcon
This DC is company scheme, I have been advised Trustees will write to me with Rules.Options.
I don't have any continuous income after redundancy pay is exhausted, though I'll certainly consider a new Private SIPP- or if hat miracle job appears, then a new workplace scheme.
Thanks

You have not mentioned your age . Presume you are 55, or over , otherwise normally there are no options to withdraw.

47 until early March.
I thought there were one option to withdraw due to Redundancy,
thanks

Definitely not. You cannot withdraw anything until you are 55 unless you cannot work in your current occupation because you are too ill to do so, or are terminally ill with a life expectancy of no more than 12 months.

Not necessarily - it depends on the definition in the scheme rules. If you've left employment, then it can't be 'current occupation' if you are unemployed!