@ You Money People...

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Especially Harbs really, as he's no an ignorant American who knows only his own countries systems ^^ (just kidding).

With my last employer I paid into a pension scheme. Changed employer and didn't bother paying into it anymore. There's not in it at mo, just a few thousand pounds, but I'd much rather have that money in my pocket than in a pension scheme I no longer pay into. I've a few money troubles at minute and have to pay for a holiday to Italy v.soon. Getting that money out of that pension and into my current account would solve all my problems right now.

Does anyone know of a way of getting that money out of there?

Looking back I wish I'd just paid the money into an ISA, rather than a bloody pension.

 

Depends on what the terms of the pension are. Some pensions require you to be 50 to collect it, which certainly wouldn't qualify as very soon. I'd say you should call your old employer to find out.

 

OK, I'll be the one to ask... if you're having money troubles, why are you going to Italy?

 

Once someones got your money your probably not gonna get it back, do you have any details of the pension scheme as I'm sure theyre all different. If it is possible for you to get your money back it's likely you'll get less than you would if you waited till your an old codge. So unfortunately I wouldnt bank on getting that money.

 

My cousin is getting married there, so I really have to show my face. My mum, dad, sister, brother and sisters fiánce are spending 2 weeks there, so I'm in with them! Need to pay for the holiday by mid May, then need to save some spending money for whilst I'm there... probably going to have to end up more in debt! Ouch!

I didn't really count on being able to get that money.. I bet it's well and truly tied up.. still, it would really help me out if I could find a way of getting it! If I can lie to them and give a reason I *really* need the money.. or can find some kind of loophole.. I don't know. Just would really solve my worries.

 

Maybe you should talk to your old employer's head office, or perhaps a solicitor

 

OK, I heard the summons and here I am.

I also had a pension fund in the UK that I contributed to when I was working there. When I left the UK to come back to NZ, I was left with a similar scenario to you, whereby I had a bit of money in a pension fund that I could not touch. Whilst, in theory, that money was still mine and I could get it when I retired, the chances were that I would lose touch with the pension company by the time I retired and the money would be unclaimed.

So, I set about trying to get it out. It was very tricky. I actually did not manage to get it out completely, but I did eventually manage to get it transferred to another pension fund in NZ that I started when I got back. I had to fill in loads of forms and get all sorts of letters from my new pension fund. It's not in my hand, but at least it is now together with my current fund. And - my current fund is one that pays out when you leave, not when you retire, so I will see it when that day comes.

That's my story. I think you will struggle to get hold of that money, if it is a genuine pension scheme. The whole point of the system is to save for your retirement so it's not supposed to be easy to get to.

There are some companies around that specialise in helping you get your pension money out, but their fees will probably not be worth it for the sums of money you are talking about.

My wife still has a little bit sitting around in her UK pension fund that she has not managed to get to extracting either.

 

Also my realm of expertiese. I'm a financial advisor and superannuation planner professionally.

In the end it depends entirely on the fine print and on information you haven't yet provided us. Pension schemes are often 'locked-in' till the person whose name it is held under reaches 65. That means you can't get it out unless you meet the requirements of a select series of circumstances. Such as severe financial hardship (read: nearing bankrupsy) or death (and I take it the latter isn't exactly the choice you'd be opting for).

You need to read the wording on the initial contract you signed for the pension scheme. Another way would be to get in contact with a financial institution and ask them to transfer the funds over to a policy you've set up with them. However, in doing so, make sure you don't sign it up to be locked in till you reach a certain age, otherwise you'll just have gone up poo-creek without a boat again.

The fees? Not alot actually, damn I'd do it for your myself, for free ( I have the forms right here ) if it wasn't for the fact you're in the UK.

 

The only way I know you can get it is to transfer it to another pension fund, and as Harbs says there are a ton of forms to fill in. If you have a private pension scheme the provider may be able to help you get, for a nominal or even no fee, but if ye have to pay to get it they will take a % most likely.

 

Whilst I live in Ireland rather than the UK most of our laws are the same as yours so hopefully this should be relevant. I've audited a couple of pensions recently and have had to read the all the rules drawn up for each of them. Generally speaking the fine print is designed to facilitate people who wish to transfer money out to a different pension scheme, i.e. their new employers. Reading the rules, or at least a summary, should probably let you know where you stand. Unless you have serious doubts about getting the money out when you are entitled to it I doubt very much there is any point of going to the expense of seeing a solicitor about it.

Speaking to your old employer should be the easiest way of finding out. Any company I've ever done doesn't actually look after the pension themselves. They just hand the money over to a pension administrator company who in turn will simply use it to buy shares in an investment fund until such time as it's needed. If your company uses one of these (and they probably do) these people deal with pensions the whole time and I'd imagine any reasonable crowd should be able to give you a rundown of the options available to you if you get in touch via your old company.

Generally speaking you shouldn't incur big administration fees for transferring the money but again it depends on the fine print. To be fair, there's always the possibility they invested in something that doesn't allow them to turn it into cash straight away. You should make absolutely sure though of what the costs and implications are. I don't know about the UK but in Ireland you get tax relief for investing in a pension. Any early withdrawal would mean this being clawed back resulting in a massive hit on what you actually get. Also, find out whether there's any special features of your old pension. It's almost certainly a standard defined contribution scheme (you get whatever's the money's worth at the time you retire) but if you were lucky enough to have some kind of index linked pension you'd be mad to take the money out.

Should probably add an obvious disclaimer at the end: you don't want to be relying on the old age pension when you retire. You'd want to have a very urgent need to take the money out to make it advisable. A holiday to Italy (albeit enforced) could only possibly qualify if you're in a temporary dire cash flow situation.

 

Most pension funds in the US cannot be with drawn until retirement; unless of course it is a 401k plan which has different laws. As for UK pension funds I imagine it is similar to the US and you can't withdraw those funds until you retire.

I would talk to the parents and see if they will lend you the money for the time being or call your cousin and say "Sorry can't make it, no cash."

Sometimes it is not worth doing something you can't afford if it is going to cause you to have a financial hardship.

 

I thought you could only get the money out if you were in a pension scheme for less than a year (two years maybe?) Otherwise it can only be transfered to a different scheme, which i don't think will really help you...