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Cashing in on a pension....

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The_Economist
The_Economist Posts: 653 Forumite
Part of the Furniture 500 Posts Combo Breaker
in Pensions, annuities & retirement planning
Is it possible to cash in a penion policy before its due. I have a couple of pensions that are sitting around and getting eatern away by ad-min fees. If i keep these policys i dont think they will amount to much as i am not paying into them.
If i could i would, but i cannot so i wont, but maybe one day i will.

Comments

  • tanith
    tanith Posts: 8,091 Forumite
    Part of the Furniture Combo Breaker
    You should check the terms of the pensions you generally can't take anything from them till you at least 50 . but they it may even be later
    #6 of the SKI-ers Club :j

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • dunstonh
    dunstonh Posts: 119,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    getting eatern away by ad-min fees

    Change them to one that doesnt then.
    If i keep these policys i dont think they will amount to much as i am not paying into them.

    Change them to ones that will then.
    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.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Move them into a low cost SIPP and then invest them properly.
    Trying to keep it simple...;)
  • jem16
    jem16 Posts: 19,583 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    EdInvestor wrote: »
    Move them into a low cost SIPP and then invest them properly.

    Or a low cost personal pension which could be even cheaper and still give access to quality funds.
  • dunstonh
    dunstonh Posts: 119,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    or a low cost stakeholder.... ;)

    or of course there may not be anything wrong with the existing pensions and the OP may not know what the charges are but is just saying that.
    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.
  • The_Economist
    The_Economist Posts: 653 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Thanks everyone for the replies. Dunstonh i agree that i could change companys or the way that they are invested but because of the amounts we are talking about to invest im not sure that it is going to be worth it in 25+ years because of inflation and not wanting to add any more money to them. I dont want to bog peolpe down with loads of information about what type of policys they are etc.etc.
    I wondered if the fund was under a certain amount or threshold would the pension companys offer a cash value.
    If i could i would, but i cannot so i wont, but maybe one day i will.
  • jem16
    jem16 Posts: 19,583 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The_Economist wrote: »
    I wondered if the fund was under a certain amount or threshold would the pension companys offer a cash value.

    You cannot cash it in at all. At 55 ( at the earliest) you will be able to take 25% cash free and the rest as an annuity.

    The amount will still grow even if you are not paying into them so they might as well grow properly. Post some details.
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    The_Economist wrote: »
    Is it possible to cash in a penion policy before its due. I have a couple of pensions that are sitting around and getting eatern away by ad-min fees. If i keep these policys i dont think they will amount to much as i am not paying into them.
    It's a good idea to dig out your pension documents, read what the actual charges are and then read some of the other articles on this site which may help you i.e.
    http://www.moneysavingexpert.com/savings/bigger-pensions
    http://www.moneysavingexpert.com/savings/discount-pensions
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
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