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| LustyLew |
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LustyLew
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Joined: 19 Apr 2004
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 Posted: 14:07 - 19 Nov 2015  Post subject: Cashing in a Pension? |
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Hi all,
Stupid question I know. I have a couple of small pensions (both holding about £1,200) that I have no idea what to do with. They are both with the same company from different employers in my past.
My current pension plan is healthy and I did consider transferring the old two into this. However the 'IFA' through work has suggested that by the time there's been all sorts of fees, it'd be not very worthwhile.
So, my question is, if it's not financially worthwhile moving them, am I able to somehow cash them in? I'm 34. I want to buy a home in the next 6 months so any extra £££ will come in handy. I'm aware that I'll be liable to income/capital gains taxes etc...
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| chris-red |
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chris-red
Have you considered a TDM?
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| LustyLew |
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LustyLew
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| Posted: 15:42 - 19 Nov 2015 Post subject: |
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Looks like it's not possible... Legally...
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| TheArchitect |
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TheArchitect
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| LustyLew |
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LustyLew
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Posted: 16:36 - 19 Nov 2015  Post subject: |
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https://www.moneysavingexpert.com/savings/pension-liberation
It's a bit daft as the pensions will be worth nothing with the annual admin fees charged. If/when I retire they'll give me something like £2 a year...
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| TheArchitect |
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TheArchitect
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| Posted: 17:12 - 19 Nov 2015 Post subject: |
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Cheers.
I suspect the regulations governing pensions will change multiple times by the time you and I are likely to withdraw the pennies left for us.
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| iooi |
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iooi
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| Posted: 18:11 - 19 Nov 2015 Post subject: Re: Cashing in a Pension? |
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[quote="LustyLew" am I able to somehow cash them in? I'm 34..[/quote]
You have to be 55 or over to cash them in.
I did cash one of my old ones in and was quite shocked by the amount I got. But tax was a killer.
Still given I have got a good pension anyway. I thought better in my pocket than sat there vegetating in their pot and giving me £800 a year if I retired.
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| Suntan Sid |
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Suntan Sid
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| Posted: 20:41 - 19 Nov 2015 Post subject: Re: Cashing in a Pension? |
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| LustyLew wrote: | Hi all,
Stupid question I know. I have a couple of small pensions (both holding about £1,200) that I have no idea what to do with. They are both with the same company from different employers in my past.
My current pension plan is healthy and I did consider transferring the old two into this. However the 'IFA' through work has suggested that by the time there's been all sorts of fees, it'd be not very worthwhile.
So, my question is, if it's not financially worthwhile moving them, am I able to somehow cash them in? I'm 34. I want to buy a home in the next 6 months so any extra £££ will come in handy. I'm aware that I'll be liable to income/capital gains taxes etc... |
You cannot cash them in until you're 55!
Where did you get the £1200 figure from?
You need to contact your pension provider and ascertain what the "Transfer Value" of the two pensions are!
Your'e annual pension statement should tell you what the "Transfer Value" is, that will be the amount you could add to your current pension pot!
I'd be quizzing your "IFA" as to what, precisely, the "fees" would be, I find it hard to believe these "fees" would make it uneconomic to transfer them! Are you certain he is not adding fees for the services of an IFA?
If you need cash now, there is nothing to stop you starting a new private pension, using the transfer value of all three pensions.
It would be up to you how much you paid in, you could choose to pay in nothing for a couple of years and use the cash for your house.
Of course going down this route means you miss out on your employer's contributions!
You do not need the services of an IFA to do this, you deal with pension providers yourself, directly!
I have done this, so don't let anyone tell you,"you can't"!
The IFA I consulted told me I couldn't do this, turned out he was wrong?
IMO, you should take any advice given by an IFA with a pinch of salt.
They are the most risk averse people you could ever meet, they are hamstrung by regulation and see the tiniest of capital reduction as a disaster of unearthly proportions!
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| iooi |
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iooi
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| Suntan Sid |
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Suntan Sid
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| Posted: 23:48 - 19 Nov 2015 Post subject: Re: Cashing in a Pension? |
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| iooi wrote: | I know when I cashed mine in they kept asking have I taken advice from a IFA or checked out some Gov website.
Just kept saying YES....
God how I hate all the compliance that you have to listen to, just to get your cash.
Will be doing the Mrs next year as her's like mine is not worth keeping as nothing is being paid in.
I will get my lamborghini.... That the gov were saying people will waste their payouts on  |
It's strange, isn't it!
Since the pension reforms, the government advice is, merely, a "recommendation" to seek independent financial advice before, cashing in and buying your Lambo.
Funnily enough IFA's are implying you "must" seek their advice, before cashing in and buying that Lambo!
Stranger still, a lot of the pension providers are insisting you use the services an IFA, before being allowed to access your own cash.
A reasonable person, may come to the conclusion that the IFA's and the pension providers have forged a deal, in the hope of fleecing yet more cash from their customers!
Of course such a thing could never happen in the city's financial sector, could it? Oh, hang on.................. 
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Old Thread Alert!
The last post was made 10 years, 77 days ago. Instead of replying here, would creating a new thread be more useful? |
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