Company Pension Cash withdrawal


J

John Rogerlot

Hi

Is it possible to withdraw money from a company pension.

I worked for the company for 16 years and have 22 years pensionable
service(due to buy outs etc......)

The company pensions dept are not answering letters. I would like to
withdraw the equivelant of 6 years pension .

Is this possible

Jon
 
J

Jonathan Bryce

John said:
Is it possible to withdraw money from a company pension.
No. Not until you decide to retire - usually you have to be over 50 to do
this.

You can transfer the money to another pension scheme in some circumstances.
 
D

DP

Not if they wont answer letters!

Seriously, most pension schemes have a transfer value. It is usually less
than your plan is worth but it what you get if you pull out early. Otherwise
it is normal to either be paying in, or retired. Most schemes wont allow
piecemeal withdrawals. What is allowed, however, depends on the wording of
the scheme.

A better option might be to consider borrowing money on the strength of the
plan. Many mortgages, for example, use a pension plan to pay off the
capital.
 
J

john boyle

DP <no@mail.?.invalid> said:
Not if they wont answer letters!

Seriously, most pension schemes have a transfer value. It is usually less
than your plan is worth but it what you get if you pull out early. Otherwise
it is normal to either be paying in, or retired. Most schemes wont allow
piecemeal withdrawals. What is allowed, however, depends on the wording of
the scheme.

A better option might be to consider borrowing money on the strength of the
plan. Many mortgages, for example, use a pension plan to pay off the
capital.
DP, please dont take this response as me having a go at you in view of
our previous exchange! But I think you are wrong on most points here.

The statement that T/Vs are 'usually' less than they are 'worth' is
either confusing (with regard to defined benefit schemes), or misleading
(with regard to defined contribution schemes). If it is a money purchase
scheme investing in 'with profit' funds then you are right, but
otherwise you are are probably wrong.

With regard to what is 'normal' then my understanding is that for most
'pension' plans, then the majority of members are not contributing or
taking benefits! They are either early leavers, paid up, or deferred,
but of course I accept that this excludes all those who are benefiting
from annuities, and you may be including them in your data.

Piecemeal withdrawals are only allowed by special 'income withdrawal' or
'drawdown' schemes which, generally but not exclusively, exclude
occupational schemes and only if aged 50+ (in most circs).

With regard to borrowing against the 'pension plan' then, in the absence
of any other reason to lend, this is only available if there is
sufficient security to repay the debt in any event, such as a legal
charge on the home (because lump sum pension benefits can not be
assigned), and is not available to anybody in an occupational scheme in
any event, and I think it is likely that the OP is in an occupational
scheme.


 

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