opting out of my bank pension

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bigmark69
bigmark69 Posts: 8 Forumite
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in Pensions, annuities & retirement planning
Hi i used to work for a top leading bank for 15 years and got made redundent, im 42 years old and i want to no if i can opt out of my pension scheme with them, and would i recive a payment from them.

mark
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  • bendix
    bendix Posts: 5,499 Forumite
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    Yes

    And NOOOOO.
  • MoneySaverLog
    MoneySaverLog Posts: 3,232 Forumite
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    If it's final salary then it's probably not wise to transfer it. You need to check with a IFA
  • dunstonh
    dunstonh Posts: 116,759 Forumite
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    MoneySaverLog wrote: »
    If it's final salary then it's probably not wise to transfer it. You need to check with a IFA

    If it is defined benefit then it will need an IFA to sign off on it anyway.
    if i can opt out of my pension scheme with them

    What do you mean by "opt out". In pension terms, opting out is what you do if you are choose not to join an occupational pension scheme. i.e. you opt out of joining it. You joined it and have since left employment so you cannot now opt out as it is too late. What is it you want to do with the pension?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
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    bigmark69 wrote: »
    Hi i used to work for a top leading bank for 15 years and got made redundent, im 42 years old and i want to no if i can opt out of my pension scheme with them, and would i recive a payment from them.

    mark

    You need to be much clearer in what you mean.

    What sort of pension scheme was it? The Bank's Final Salary Scheme? The Bank's 'Money Purchase' scheme? Or simply a Personal Pension arranged via the bank that you paid into with a standing order/direct debit?

    If the first two, then it is 'usual' for contributions to come from payroll deduction. Hence, by leaving, you automatically have 'opted out' of the scheme since you are no longer eligible. If the third, then you have the right to continue it, or simply stop contributing. Up to you.

    Either way, you will not get any 'payment' from them. A pension will normally just 'exist' when you live, and provide some form of benefit (lump sum and pension) when you choose to retire or take it (age 55 upwards).
  • bigmark69
    bigmark69 Posts: 8 Forumite
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    when i joined the bank they paid into my pension i didnt have to pay, and on the news letter we get from them it says you can opt out of your pension so i dont no what this means.
    i no when i get to 55 i can cash in half of my pension but i dont no what the opt out of the scheme is about.
  • dunstonh
    dunstonh Posts: 116,759 Forumite
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    and on the news letter we get from them it says you can opt out of your pension so i dont no what this means.

    It means active members can choose to opt out of membership (if they are really stupid). You are not an active member.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RichandJ
    RichandJ Posts: 1,087 Forumite
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    dunstonh wrote: »
    It means active members can choose to opt out of membership (if they are really stupid). You are not an active member.

    And, NO, you cannot take HALF your pension as cash at 55. Only 25%. Please read what they have sent you.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • Bigmoney2
    Bigmoney2 Posts: 640 Forumite
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    RichandJ wrote: »
    And, NO, you cannot take HALF your pension as cash at 55. Only 25%. Please read what they have sent you.


    You can take all your pension at 55, BUT monthly payments will be reduced for taking it before scheme pension age. (this could potentially be a 50% reduction)

    You are allowed to take an amount of up to 25% as a tax free lump sum (cash) by commuting some pension income, which will further reduce the amount paid as income.
  • RichandJ
    RichandJ Posts: 1,087 Forumite
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    I did say "as cash", as the the OP said "cash in half my pension".
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • taking_stock
    taking_stock Posts: 183 Forumite
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    bigmark69 wrote: »
    when i joined the bank they paid into my pension i didnt have to pay, and on the news letter we get from them it says you can opt out of your pension so i dont no what this means.
    i no when i get to 55 i can cash in half of my pension but i dont no what the opt out of the scheme is about.


    no wonder the banks are in such a mess!!!!
    :beer:
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