Cashing in dB and DC pensions at 55

Marcon

DRS1 said:

Not sure why the OP creates a new thread for every post but the answer to @QrizB's question is aerospace.  BAE?

OP there is a debt board if you have debt issues.  Taking a pension as a lump sum to pay off debt is probably NOT a good idea.  Though that may depend on who is collecting the debt.

Probably because they aren't used to using this sort of forum - not everyone is an avid user. 

OP, I've 'reported' your threads (only to ask for them to be merged - nothing bad!).

Marcon

douglw said:

My total in both pensions is around 170,000 , I am no longer working and unsure if I am making the right decision. Thank you 

Depends what issue you're trying to resolve - and you haven't given any information which would enable anyone to comment helpfully. What are the alternatives to trying to access your pension money now? What happens if you don't access a large amount of cash?

Brie

To be blunt - if you're not working and have debts then maybe this is not the time to do alterations to your home.  Unless they are essential for you to continue living there due to having disabilities or having to care for a family member with disabilities.  If they are essential for those reasons then there may be better ways to access the cash for that - grants via unions, employer associations, disability groups or even your local authority.

As for dealing with the debts I suggest you pop over to the debtfree wannabe board and ask for assistance specific to the debts alone.  First response is likely to be for you to fill out a statement of accounts (SOA, see below) and post it so that people get a better idea of your financial situation.  

douglw

I have just turned 55 and currently not working I have around 120,000 in a DB pension and 55,000 in a DC as well. They are both from my previous employer and I was made redundant last year. I contacted the provider to see if I could cash in my DC alone and was told this is not permitted as they are linked together, I have essential repairs of around 40,000 to my property, i am now being sent out transfer forms in the post as they are only giving me the option to accept a £30,000 lump some with around £380 a month. my pension will be settled basically and that's not what I really wanted. Is there a way I can put my hands on that kind of money without having to kind of cash in totally as such. I'm so confused.

MallyGirl

douglw said:

I have just turned 55 and currently not working I have around 120,000 in a DB pension and 55,000 in a DC as well. They are both from my previous employer and I was made redundant last year. I contacted the provider to see if I could cash in my DC alone and was told this is not permitted as they are linked together, I have essential repairs of around 40,000 to my property, i am now being sent out transfer forms in the post as they are only giving me the option to accept a £30,000 lump some with around £380 a month. my pension will be settled basically and that's not what I really wanted. Is there a way I can put my hands on that kind of money without having to kind of cash in totally as such. I'm so confused.

Transferring a DB pension out requires financial advice that is going to cost about £5k and may still be to not transfer. Before making such a huge decision you need to do some reading so that you understand the basics. 

If you spend this pension now what are you going to live on in later life.

DRS1

Are you sure they won't let you transfer just the DC bit to another scheme and leave the DB bit behind?

Marcon

douglw said:

I have just turned 55 and currently not working I have around 120,000 in a DB pension and 55,000 in a DC as well. They are both from my previous employer and I was made redundant last year. I contacted the provider to see if I could cash in my DC alone and was told this is not permitted as they are linked together, I have essential repairs of around 40,000 to my property, i am now being sent out transfer forms in the post as they are only giving me the option to accept a £30,000 lump some with around £380 a month. my pension will be settled basically and that's not what I really wanted. Is there a way I can put my hands on that kind of money without having to kind of cash in totally as such. I'm so confused.

Have you read the relevant member booklet to ensure you understand your options: https://pensions.baesystems.com/more-information/member-booklets

douglw

DRS1 said:

Are you sure they won't let you transfer just the DC bit to another scheme and leave the DB bit behind?

I called them today (aptia) I'm not sure if that's allowed ! ,  a receptionist who seemed very unsure about anything really put me on hold and then told me that it it not possible as they are combined in some way , I then asked the question of what a lovely woman on money helper advised me to request,  that was what are the restrictions of me just taking my DC pot , her reply was just simply it's restricted and can not be done. I'm being sent  transfer documents as of today and I'll be honest I'm getting to the point of letting one of the many companies that offer to take over all of this for me to just do it , I really thought after 20 years of paying into pensions it would be simple to get around 40k and leave everything as it was , how wrong was I . Thank you 

bjorn_toby_wilde

DRS1 said:

Are you sure they won't let you transfer just the DC bit to another scheme and leave the DB bit behind?

I don’t know, but could it be an AVC rather than a DC?  Maybe that could be linked in some way.

I believe some AVCs can be taken 100% as cash but only if the rest of the DB is put into payment. That might be what the administrator meant.

dunstonh

douglw said:

The company was aerospace 

Which scheme?  BAE has picked up many over the years.    The member booklets are on the pension website for each of the schemes.

Some of the BAE schemes had a DC element with a final salary underpin.

If it is an AVC, then in most cases, that would be the Mercer Master Trust administered by Scot Wid (most legacy AVCs transferred into that at some point). It could also be used in conjunction with the main scheme to have the PCLS paid from it.     The MMT is standalone and can be transferred.  Some of the legacy AVCs had to remain with the legacy companies due to certain terms that linked them to the main scheme.

So, knowing which DB and DC scheme is important.