Opting out query

Scallypud

I worked for a company that opened a works pension.
I have the option to opt out but i will lose my employers and tax relief contributions.
As i am now retired and over 55 what are my options for taking the money out without losing the contributions?

QrizB

Scallypud said:

I worked for a company that opened a works pension.

So you don't work for that company any more?

Scallypud said:

I have the option to opt out but i will lose my employers and tax relief contributions.

This suggests you are still working there, and making contributions?

Scallypud said:

As i am now retired ...

But you've retired? So aren't working any more?

Scallypud

I have stopped working but only received my letter from Royal London today.

Marcon

Scallypud said:

I have stopped working but only received my letter from Royal London today.

You can only opt out of a scheme when you are an 'active' member (someone currently building up benefits).

Anything to stop you simply drawing the benefits - I see from your other threads that you are old enough to access your pension?

xylophone

Presumably this is a pension resulting from a couple of years in your post retirement "took it because bored stiff in retirement " job?

You have a SIPP - had you considered a transfer in?

Scallypud

I did retire a few years ago but have been back to this company a few times now just for short periods. The last time i went back they had to open a works pension for me. I left a few weeks ago but only received the letter today from Royal London regarding my opting out.
I just wanted to know my options if i can take it all out and get 25% tax free and taxed on the rest without losing company and tax contributions.

DE_612183

Normally if you take the money - you just get your contributions back 9 maybe tax free, maybe not depending on the status of your contributions ) - you won't get the employers contributions unless you take it as a pension - you may be able to take the whole lot as a lump sum IF the scheme allows - but then you'd get taxed on the 75% depending onw hat other income you have - may push you into 40% tax bracket...

Scallypud

I have spoken to Royal London and have decided not to opt out.
Reason being if i opted out i would lose my employers and tax contributions. In a month or so my works pension will become a private pension when i can take 25% tax free and pay 20|% tax on the remainder.

DE_612183

Scallypud said:

I have spoken to Royal London and have decided not to opt out.
Reason being if i opted out i would lose my employers and tax contributions. In a month or so my works pension will become a private pension when i can take 25% tax free and pay 20|% tax on the remainder.

That makes sense - but the 20% is dependant on your other income - if may still have some of your 12750 tax free allowance as well.