Can you cash in a private pension early?

[mobilephone]

Sorry if this has been asked before

I pay only a little each month into a private pension.

Can it be cashed it early?

Can it be done even if you loose a little of the money you have in it?

Or do you have to waite till you retire?

 

Has any one done this? :confused:

[Guest jucee555]

Hiya, I am not sure totally of the answer to your question but when I did cash in a pension a few years ago I lost a lot of money so it was not a good idea, just thought I would share my experience, my pension was through an employer and when I left the job I cashed it in. I am not sure what happens with other pensions.

Good luck and take care,

Sam :-)

[abz123]

If you got tax relief either through your pay or tax returns for your contributions you will be taxed on anything that you get if you can cash it in.

 

Also, there will most certainly be fees to pay which will reduce anything you get even further.

[rammygirl]

Ask the pension provider if this is possible and get a quote from them indicating how much it will realise. They should also be able to tell you the tax implications.

[Guest The Ropey HOFF]

Hi

 

i have just cashed my AVC's pension in i was paying £100 per month for 20 years and in total i paid in £24,000 and i got my last quote and it was worth, yep £24,000 not a penny more i would have been better putting my money in the bank on a low interest. In fact in the last year it lost £1,000 and only went up £200. My advice is if you can draw it out do so now, they are losing. You have to be 55, i was 50 prior to the 1st april 2010, which after that date they raised it to 55. Double check though and you can only recieve 25% of what you have paid in, in cashback, the rest is paid as a pension monthly which isn't a lot.

 

jim

[mobilephone]

Hiya, I am not sure totally of the answer to your question but when I did cash in a pension a few years ago I lost a lot of money so it was not a good idea, just thought I would share my experience, my pension was through an employer and when I left the job I cashed it in. I am not sure what happens with other pensions.

Good luck and take care,

Sam :-)

 

 

Thank you for your reply

[mobilephone]

If you got tax relief either through your pay or tax returns for your contributions you will be taxed on anything that you get if you can cash it in.

 

Also, there will most certainly be fees to pay which will reduce anything you get even further.

 

Thanks for your reply and answer

[mobilephone]

Ask the pension provider if this is possible and get a quote from them indicating how much it will realise. They should also be able to tell you the tax implications.

 

 

I phoned them direct and they said I am tied and can not cash it in.

I can transfer to something but can not have my monet at all till I retire.

They were no help at all.

[mobilephone]

Hi

 

i have just cashed my AVC's pension in i was paying £100 per month for 20 years and in total i paid in £24,000 and i got my last quote and it was worth, yep £24,000 not a penny more i would have been better putting my money in the bank on a low interest. In fact in the last year it lost £1,000 and only went up £200. My advice is if you can draw it out do so now, they are losing. You have to be 55, i was 50 prior to the 1st april 2010, which after that date they raised it to 55. Double check though and you can only recieve 25% of what you have paid in, in cashback, the rest is paid as a pension monthly which isn't a lot.

 

jim

 

 

I have phoned them and they will not let me have any money. I am tied in till I am 55.

I even asked about putting a freeze on it. Still can not get any money.

Said If I leave the country still no.

 

So I you must have been in a different pension scheme to me.

 

Thank you for finding time to reply.

[Guest Guest31881]

I have phoned them and they will not let me have any money. I am tied in till I am 55.

I even asked about putting a freeze on it. Still can not get any money.

Said If I leave the country still no.

 

So I you must have been in a different pension scheme to me.

 

Thank you for finding time to reply.

 

 

There are companies that will arrange to transfer your pension to an Australian sceme, but the charges may be high and you could well be better leaving it where it is. have you considered keeping the pension and still paying to it until you can claim it.

[mobilephone]

There are companies that will arrange to transfer your pension to an Australian sceme, but the charges may be high and you could well be better leaving it where it is. have you considered keeping the pension and still paying to it until you can claim it.

 

 

Yes I guess that another option. In fact my only option.

Or I could freeze it before I leave the Uk then collect it when I am 55.

Thank you for your help

[Guest TheHollies]

we have been looking into transferring a small pension to a SIPPS, that way you can 'borrow' upto half of the amount thats in. dont know if thats any good for you?

[Andrew from Vista Financial]

Hi

 

i have just cashed my AVC's pension in i was paying £100 per month for 20 years and in total i paid in £24,000 and i got my last quote and it was worth, yep £24,000 not a penny more i would have been better putting my money in the bank on a low interest. In fact in the last year it lost £1,000 and only went up £200. My advice is if you can draw it out do so now, they are losing. You have to be 55, i was 50 prior to the 1st april 2010, which after that date they raised it to 55. Double check though and you can only recieve 25% of what you have paid in, in cashback, the rest is paid as a pension monthly which isn't a lot.

 

 

jim

 

It is not the performance of the Pension that has done this more so the performance of the underlying investment funds. You were obviously invested in a very badly performing fund, I would suggest it could have been a With profits investment, this is along the lines of how an endowment works.

 

You mention Pensions are losing, in fact most investments have performed exceptionally well over the last 12 months but again it does depend on what the underlying Pension investments funds are.

 

 

There are companies that will arrange to transfer your pension to an Australian sceme, but the charges may be high and you could well be better leaving it where it is. have you considered keeping the pension and still paying to it until you can claim it.

 

If you keep it where it is, consideration has to be given to potential tax implications through the foreign investment fund rulings (however these are set to change but no one is certain how they will change) and also the fact that at some point an Annuity will have to be taken unless of course the rules of triviality apply http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/cashing-in-pensions-(triviality) however the Australian tax man is likely to want to tax the amount withdrawn.

 

If an Annuity has to be taken and for example the Pension fund is valued at 20k then an annual income of around 600 GBP per annum would be achievable assuming indexation is chosen Find & Compare The Best Compulsory Purchase Annuities – Moneyfacts and is really not going to go far. The Australian Superannuation rules allow for full withdrawal after age 60 and in retirement tax free, much more attractive in my eyes.

 

 

 

Yes I guess that another option. In fact my only option.

Or I could freeze it before I leave the Uk then collect it when I am 55.

Thank you for your help

 

So as above, options may be to cash it out at retirement if triviality applies, draw it as income and eventually purchase an Annuity or transfer the Pension to Australia.

 

we have been looking into transferring a small pension to a SIPPS, that way you can 'borrow' upto half of the amount thats in. dont know if thats any good for you?

 

 

Self Invested Personal Pensions (SIPPS) are arrangements similar to Self Managed Super funds (SMSFs) in Australia.

 

You may be allowed to borrow funds, restricted to 50% for SIPPS, however this money must be used to invest in assets within the Pension enviroment. It does not mean that you can borrow the money personally. Understanding Money and Finance : Self-Invested Personal Pension (SIPP)

 

I have not had any dealings with SIPPS for a few years now but I do not think that any changes have been made to allow this to happen.

 

 

 

Regards

 

Andy

 

 

 

(Please note that this is general information only and not to be treated as advice, sorry needs to be said)

[Guest The Ropey HOFF]

I have phoned them and they will not let me have any money. I am tied in till I am 55.

I even asked about putting a freeze on it. Still can not get any money.

Said If I leave the country still no.

 

So I you must have been in a different pension scheme to me.

 

Thank you for finding time to reply.

 

Hi,

 

it is probably a similar pension scheme to me, in april this year the government raised the age you can cash your pension in from 50 to 55. As for pensions doing well in the last year, i don't want an argument but i wouldn't pay a single penny into any pension scheme, i paid in £1200 and my total went up £200, making a loss of £1000. My advice is, i would either invest in property, especially now that the prices are at their lowest, long term say 20 years this will be a good pension investment, you could rent the property out and it would pay itself. Or, i would invest my money in a bank savings account with a low interest deal, its better than getting no interest over 20 years like what happened to me and i was with a big British company. Property investment is the best way to go if you want to make a good profit, i know very little about any of this it is only a suggestion, but private pensions are dead in the water.

 

jim

[mobilephone]

Hi,

 

it is probably a similar pension scheme to me, in april this year the government raised the age you can cash your pension in from 50 to 55. As for pensions doing well in the last year, i don't want an argument but i wouldn't pay a single penny into any pension scheme, i paid in £1200 and my total went up £200, making a loss of £1000. My advice is, i would either invest in property, especially now that the prices are at their lowest, long term say 20 years this will be a good pension investment, you could rent the property out and it would pay itself. Or, i would invest my money in a bank savings account with a low interest deal, its better than getting no interest over 20 years like what happened to me and i was with a big British company. Property investment is the best way to go if you want to make a good profit, i know very little about any of this it is only a suggestion, but private pensions are dead in the water.

 

jim

 

Wow thank you every one for replying to me. Thank you for finding time to answer me. Thank you again. This has helped me a lot.