Company Pension Cash withdrawal

Discussion in 'UK Finance' started by John Rogerlot, Feb 18, 2004.

  1. 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
     
    John Rogerlot, Feb 18, 2004
    #1
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  2. 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.
     
    Jonathan Bryce, Feb 18, 2004
    #2
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  3. John Rogerlot

    DP Guest

    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, Feb 19, 2004
    #3
  4. John Rogerlot

    john boyle Guest

    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.


     
    john boyle, Feb 19, 2004
    #4
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