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Original poster

Cashing in pension?

26 replies

geordieminx · 09/03/2009 09:36

Another question...

Copied and pasted from dp's email

Might be worth asking mumsnet financial services about the pension thing. Paid about £12k into it over 3 years, up until 4 years ago, and have ?taken a payment holiday since?. Ask what the likely worth of it would be when I?m 65 if I?m not putting any more money into it.Also ask, if it could be surrendered and the money taken out, And if so what percentage would have to be paid back to the taxman as it was taken out of gross wages. 12k sitting there for a pension of 50p a month or something aint that great

Thanks ladies.

OP posts:
Marthasmama · 09/03/2009 09:47

You can't cash a pension in until 55 at the earliest. You should get an annual statement which should include a projection indicating what the final sum would be based on three different growth rates. You might be able to take it as 'Trivial Funds' at 55 but you would have to pay some tax on the lump sum. I have baby brain so I can't remember all the details! You might find this helpful.

Original poster
geordieminx · 09/03/2009 09:49

Another 10 years to go then... bugger.

OP posts:
Marthasmama · 09/03/2009 09:55

That's the thing with pensions unfortunately.

Original poster
geordieminx · 09/03/2009 10:00

We werent sure whether because it had only been paid into for 4 years whether it could be cashed in.

Probably be worth nowt in 10/20 years

OP posts:
Marthasmama · 09/03/2009 10:11

We occupational pensions, if you've been a member for less than two years then they usually refund your payments. It is a bugger, but it should continue to grow over the next few years. You should speak to an IFA to find out all your options. If you're paying into another pension, you might be able to transfer the deferred pension into the active one.

Marthasmama · 09/03/2009 10:11

I mean 'with' not 'we'. Oooppsie!

Original poster
geordieminx · 09/03/2009 10:16

Its all dp's and its a big blardy mess.

He was in the sergent in the army for 15 years, paid pension. Then was with telecoms company, and paid pension for 4 years. Currently is contracting and isnt paying into any pension. We are getting married at the end of the year so I'm trying to get him to sort all these bits and pieces out, and find out what they are, where they are and such like, hence the other thread about endowments too. He has all these things but no idea what they are worth/when the mature blah blah blah.

He is a nightmare!

OP posts:
Marthasmama · 09/03/2009 10:19

Typical man! Drag Take him to an IFA, they might be able to sort out wills for you at the same time as you will need to sort that out when you get married. Good luck with sorting him out!

Original poster
geordieminx · 09/03/2009 10:22

Sorry - another question, s it ok just to look for one in the phone book? How much is it likely to cost?

OP posts:
Marthasmama · 09/03/2009 10:28

Here you go. Some charge fees for advice others rely on commission. You can always ask them whether they charge up front fees. My husband used to be an IFA but dealt mainly in mortgages so fees were based on the loan value. I worked for a building society so no fees were charged. An IFA is your best bet though.

Marthasmama · 09/03/2009 10:30

Oh and you can check an advisor's status with the FSA here

Original poster
geordieminx · 09/03/2009 10:32

thank you!

OP posts:
Marthasmama · 09/03/2009 10:34

No worries

Original poster
geordieminx · 09/03/2009 10:46

Its the sort of stuff that keeps me awake at night. We have a ds who is 2, dp has 2 teenagers from a previous marriage, we have no wills, and I'm currently not working.Dp has a house that he owns outright that his mum lives in, but as there is no will if anything god forbid should happen to him I would be screwed! It is all such a mess.

OP posts:
Marthasmama · 09/03/2009 10:54

DH and I are both fully qualified Financial Advisors and we don't have a will. We can't decide who will have the kids! But sorting out a will is very important , especially if there are complicating factors.

Original poster
geordieminx · 09/03/2009 11:12

Well I dont know much about this stuff but at the moment if anything happened to dp I dont think I would get anything - it would be split 3 ways between the kids, with ds's being held in trust? As I dont work just now I'd be up shit creek big style! Although hearing that you dont have one has made me feel a bit better

OP posts:
Marthasmama · 09/03/2009 11:22

Just so you know what would happen here are the rules of intestacy. My brain is hurting from all this thinking!

wombleprincess · 09/03/2009 18:03

the thought that my bloddy mil would have got a wad of cash really frightens me..

Original poster
geordieminx · 09/03/2009 19:15

Sorry womble I dont understand?

OP posts:
wombleprincess · 10/03/2009 07:35

sorry i was looking at the laws if intestacy..

Original poster
geordieminx · 10/03/2009 08:39

Ah see!

You see I had visions of dp's kids turning up on my doorstep telling me that they had rights to have the house and kicking me out!

Looks like it wouldnt work like that though

MIL lives in a house owned by us s no worres on that front

OP posts:
wombleprincess · 10/03/2009 16:16

well if my MIL doesnt sort out her life and take her head out the sand she might well end up living in a house owned by us. rant rant rant.....

Original poster
geordieminx · 10/03/2009 17:55

thats not good. I joke to dp that i'm gonna push his mum down the stairs . She said at xmas that pickled onions kill her with indigestion. I found 2 huge jars in the cupboard. I also volunteered her to be in charge of fireworks every november.

OP posts:
wombleprincess · 10/03/2009 18:34

i am very surprised "milicide" is not more common...

Original poster
geordieminx · 10/03/2009 20:40

To be fair mine is great - she lives 100 miles away, we see her once every couple of months, and speak to her on the phone about the same. She smokes 60 a day, only has 1 lung, and looks a bit like Mother Teresa

OP posts: