Locked Pensions

adwhitworth

Hi. My dad got a letter the other day saying that one of his locked pensions was worth more than he thought it was. We are wondering if it is possible to cash these in early and to try and recover the money out of it as by the time its matured, it'll be worth absolutely nothing hardly.

EdInvestor

Hello adw

... by the time its matured, it'll be worth absolutely nothing hardly.

Why do you say this?

What kind of pensions are these ( company, personal,retirement annuity plans?) and how old is your Dad?

dunstonh

Can you also explain what you mean by locked? It isnt a term that is exists with pension plans.

EdInvestor

"Pension unlocking" is a term used by all those unscrupulous IFAs who try to take 30% of the fund, isn't it? :mad:

These people are best ignored.

At the same time, if there is a need for cash before the official retirement date, the rules will be changing next year to enable you to get 25% of a fund out while leaving the rest invested to grow so as to pay your pension later.You need to be over 50 to do this, and the age will go up to 55 from 2010.

There will be no need to pay anyone a big fee to get this money.You can do it yourself.

dunstonh

"Pension unlocking" is a term used by all those unscrupulous IFAs who try to take 30% of the fund, isn't it? :mad:

Why is every finanancial advisor an IFA in your negative responses? IFAs account for a very small number of the complaints received yet you make us out to be the worst.

That being said , i did actually post that its probably linked to those companies that advertised heavily about unlocking your pension and who promptly got fined by the FSA for failing to point out the negatives of what they were doing. I then deleted that bit as i felt it unneccessary.

EdInvestor

DH

Why is every finanancial advisor an IFA in your negative responses? IFAs account for a very small number of the complaints received yet you make us out to be the worst.

Is that a chip I see on your shoulder?

You mentioned unlocking was not a term in general use in the pensions industry ( by the IFAs with scruples) and I was explaining that it was the other unscrupulous types who tended to use this terminology - and generally get sorted eventually by the FSA as you say.....

I trust you would not assert that every IFA in the industry was pure as the driven snow, had never missold a policy in his life, had nothing but the best interests of the client in mind, was never greedy about commission, etc etc etc.....

dunstonh

Is that a chip I see on your shoulder?

Acutally i was thinking it appears to be your chip.

I trust you would not assert that every IFA in the industry was pure as the driven snow, had never missold a policy in his life, had nothing but the best interests of the client in mind, was never greedy about commission, etc etc etc.....

You cannot assume that with any industry or profession. However, in the highly regulated financial services industry today its harder for those types to survive.