Early Pension

[krailton]

Hello

I wondered if any can help. We started our IVA in Sep07, and in March 2011 i can take a early pension at 50 from an old employer even though i will still be working, its not much i could have a lump sum Of £10,000 and weekly £25. Can you tell me if i have to hand over this lumo sum from my pension to the IVA if i take it please?

thank you

karen railton

[MelanieGiles]

This would only be treated as a windfall if you chose to draw down the lump sum - unless the terms of your IVA would expressly exclude it. The £25 you would receive per week would also be included as additioanl income.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[krailton]

thank you for your help, i think i would better if i leave it and not take it till my iva is finished.



karen railton

[hara]

Hi all,

Can some tell me if you retire early, can you leave your lump sum till later, until IVA is completed.

Can you IP force you take lump and hand it over to them?

Thanks.
Hara.

[greedfighter]

Usually if you wish to take a lump sum against a pension (this is called commutation) it has to be taken at the time that the pension can be 'realised'. There are some some schemes which will allow you to take it after that date providing you do so within a set time scale (usually within six months).After that it becomes locked.

It really depends on what the terms of your particular pension scheme are and you would have to find out what the rules of your particular pension scheme say.

You also have to realise that if you commute a pension and take a lump sum you are foregoing some of your future pension i.e your pension will be reduced according to how much lump sum you take. Whether this would be a temporary or permanent reduction again depends on your scheme. In some circumstances you may not get a pension at all if you take it all as a lump sum.

You need to weigh up all the figures and the pros and cons quite carefully.