Seeking Advice

SeekingHelp_3

Hello,

I'm sorry if I'm asking for advice in the wrong place, but I'm not sure who to ask. I understand that I will probably have to ask a financial advisor but they are terribly expensive and I'm sure there's an awful lot of brainpower and experience in these forums!

I have been working for my company since May, 2003 and have subscribed to its Investment Plan instead of a Retirement Plan as I'm under 30. This Investment Plan takes is made up of 3% of my wage which is matched by my employer. The idea is that when I reach 30, it transforms into a Retirement Plan and I can make larger contributions to the fund.

However, don't tell my employer this, but I am planning on moving to the States to be with my girlfriend in the winter of this year, preferably before November. At this point, my Investment Plan will be useless as there's about £5,000 in it and it'll be sat there in the UK whilst I'm working in the States for the next 40 years or so.

Is there ANY way that I can cash in this investment plan at all? It would help me enormously. I know it's a better idea to save for a pension, but I have a wedding to pay for and I have to move over there and live without a job until someone employs me! I would imagine that were it possible, I would have to take a big hit with tax, but even if I take a 50% hit, that would be enough. It's better for me to cash it in than to have it sat here in the UK.

I've spoken to my employer about cashing out the plan and they say it's not possible. When I leave the company, it can be 'transferred'. As I'd be leaving the company to move to the States, is there anything I can do at that point?

Any help that anyone can provide would be greatly appreciated. It really would as moving to the States is looking like it's going to be put back a bit due to a particularly nasty council tax bill and major car repairs (I need to repair the damn car before I sell it, after all!).

Many thanks in advance,

SeekingHelp

EdInvestor

SeekingHelp wrote:

I have been working for my company since May, 2003 and have subscribed to its Investment Plan instead of a Retirement Plan as I'm under 30. This Investment Plan takes is made up of 3% of my wage which is matched by my employer. The idea is that when I reach 30, it transforms into a Retirement Plan and I can make larger contributions to the fund.

I've spoken to my employer about cashing out the plan and they say it's not possible. When I leave the company, it can be 'transferred'.

Hello SH

If you can't take this money out, then it would appear to be a company pension by another name.

Pensions of all descriptions come with all sorts of restrictions, including inability to get access to the money before you are aged 50 (at the earliest.)

Did they explain the T&Cs of this "Investment Plan" to you when you started it?