Un-used private pension reclaim

[vossy]

Re: Un-used private pension reclaim

Niddy is right with 55 for a private pension. Also in that it can only be transferred between funds / employers etc. As far as I am aware, he will be able to take it as a lump sum when / if he does retire at 55. This is based on the fact that there would be no value to the actual pension.

There was talk (pre Gen Election) that pension pots were going to made available to those that needed to - ie to pay off debt (yeah right! ) etc, but couldnt be used just to live the high life. How they would be able to stop this once the money was in your account I have no idea.

However, talk is about as far as it got, nothing happened after.

Yeah I looked into mine and at age 55 you can draw 25% tax free but must buy an annuity unless you have a terminal illness, at age 60 you can draw the whole lot IF the entire fund is 18k or less, 25% would be tax free and the rest at normal tax rate.

Not an expert but I spent months on this last year. Annuities are worthless at the moment.

[Shadow2981]

Re: Un-used private pension reclaim

That was my first opinion of it to be honest, but as i said, not something ive ever looked into... I started my first one less than a year ago lol... Im crap at saving, so i figure its better to have a little at the end than nothing :/

[oscar]

Re: Un-used private pension reclaim

Niddy is right with 55 for a private pension. Also in that it can only be transferred between funds / employers etc. As far as I am aware, he will be able to take it as a lump sum when / if he does retire at 55. This is based on the fact that there would be no value to the actual pension.

There was talk (pre Gen Election) that pension pots were going to made available to those that needed to - ie to pay off debt (yeah right! ) etc, but couldnt be used just to live the high life. How they would be able to stop this once the money was in your account I have no idea.

However, talk is about as far as it got, nothing happened after.

[Shadow2981]

Re: Un-used private pension reclaim

Well he will be 50 in August, so perhaps he could try find one that allows a lump sum withdrawal to transfer it to at 50.. I didnt think it worked like that, i know with mine the only conditions i can withdraw it are if i am given 12 or less months to live, or if i die pre-retirement age (in which case next of kin can withdraw it). The consultant made that very clear.

[Never-In-Doubt]

Re: Un-used private pension reclaim

We have a few insurance peeps post on here, however I think with pensions it's not like that.....

I thought (I could be wrong) that all you could do was transfer it to a new provider, you cannot access cash until a set age (used to be 50/55 IIRC). A SIPP is different but similarly, not sure on earliest release age.

[Shadow2981]

Wow, I have only just noticed there is a pension thread on here! AAD really is the one-stop-shop

Ok, a few weeks ago, the missus' old man asked me if i knew of any way to get your money out of a pension scheme that had been sat unused for quite some time.

I had never heard of it being done, but he has a healthy chunk in there, but it is only worth pennies at retirement! He wants it out, its too late for him to make further contributions to get a worthwhile return, way more than he could afford.

We found some companies claiming to be able to release up to 50% of the funds, but when he spoke to them, they didnt appeal...

Is there a way, like PPI and charges to get any of the money out?

Thanks