Redundancy - Less that a year of employment - Pension withdrawal

acebanditcat

I have been told that I and the rest of my co-workers are being made redundant.
I have been with the company 9 months tomorrow.
They have given me two months notice and I am aware I don't get any redundancy as I've been here under two years.

But my query is my pension.  I have been in it since the first contribution in August. So that's 8 months and it has a value of £1,318.00 at the moment. So when I leave this could be around 
£1490.00. I am 57.

I have debt of around £2,000 so I would like to withdraw this pension and pay towards this 
as I have other larger pensions which I wont be drawing for another 10 years.

I've just spoken to the pension company, who said they can only tell me 25% is tax free and the remaining 75% is taxed so didn't tell me an amount of if they will charge me to with draw it

Its with True Potential and he said its a personal pension but was provided by my company

Would anyone know what sort of amount the the bank, as it were, i could/should get

Thanks in advance for any advice

hyubh

acebanditcat said:

my query is my pension.  I have been in it since the first contribution in August. So that's 8 months and it has a value of £1,318.00 at the moment. So when I leave this could be around 
£1490.00. I am 57.

I have debt of around £2,000 so I would like to withdraw this pension and pay towards this 
as I have other larger pensions which I wont be drawing for another 10 years.

I've just spoken to the pension company, who said they can only tell me 25% is tax free and the remaining 75% is taxed so didn't tell me an amount of if they will charge me to with draw it

It would be taxed at your marginal rate. Taking a pension 'flexibly' like this would mean any subsequent pension contributions (employee or employer) would be subject to the 'money purchase annual allowance' (MPAA) of £10K pa however, so it needs to be properly considered. If your other pensions are DC not DB too, it would likely be a better option to consider what 25% of what would clear your debts, and leave the rest invested.

PS - this question would have been better posted on the Pensions board, maybe a mod could move it...?

EnPointe

hyubh said:

acebanditcat said:

my query is my pension.  I have been in it since the first contribution in August. So that's 8 months and it has a value of £1,318.00 at the moment. So when I leave this could be around 
£1490.00. I am 57.

I have debt of around £2,000 so I would like to withdraw this pension and pay towards this 
as I have other larger pensions which I wont be drawing for another 10 years.

I've just spoken to the pension company, who said they can only tell me 25% is tax free and the remaining 75% is taxed so didn't tell me an amount of if they will charge me to with draw it

It would be taxed at your marginal rate. Taking a pension 'flexibly' like this would mean any subsequent pension contributions (employee or employer) would be subject to the 'money purchase annual allowance' (MPAA) of £10K pa however, so it needs to be properly considered. If your other pensions are DC not DB too, it would likely be a better option to consider what 25% of what would clear your debts, and leave the rest invested.

PS - this question would have been better posted on the Pensions board, maybe a mod could move it...?

I agree 

and if one or more of the other  pensions are DC  the OP should seek advice aobut whether it;s financially worthweile  transferring this small pension fundto  one of the larger DC ones