Pensions- any advice appreciated?

[r_l]

hiya there- i dont know if anyone knows the answer to this question.

I recently had through the post my pension statement- showing that i have approximately 10K in there. This would be a good figure to offer my creditors as full and final payment (should family lend me the remaining). Does anyone know if i am able to access this? or if i was made redundant? or am i strickly only able to access this when im old and grey.

Im sorry if this sounds a stupid question, but its nothing ive ever considered before.

I am just desperate to clear these debts

Any advice appreciated. [x2x]

[MelanieGiles]

Hi r l

It is unlikely that you will be able to withdraw the money from your pension scheme, but if you have only made a minimum level of contributions and fulfil other criteria, the pension provider my agree to a refund of your contributions.

Think very carefully about whether this is the right thing to do. When you are "old and grey" there is unlikely to be much state pension (if any) and you do still need to live.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Hunter1]

Hi,

I wouldn't recommend this coures of action. You will need this money later in life and there is no way creditors can get their hands on it in an IVA or Bankruptcy.

I would try all other options first. I can see you feel morally responsible to pay the debts back (we all do on this site) but it's not worth sacrificing your pension for.

[r_l]

Thanks for all your advice.

I understand what is been said about i will need this later in life however I am only 22 and feel that if i get this debt out of my way - ill be able to start all over again.

I am unable to have children - so as long as i stay healthy, i will have plenty of opportunity build up a pension fund by working until a good age.

Melanie, sorry - but could u explain 'made a minimum level of contributions and fulfil other criteria' i dont understand this part?

Thanx in advance X

[MelanieGiles]

Hi r l

I'm no pensions expert, but I do know that under some scheme rules if you have paid a certain level of contributions then you may be entitled to receive a refund back. Check with your pension provider to see whether you are eligable.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Andy2]

Even IF you were able to take some money out - which is very doubtful before the age of 50 (rising to 55 in 2010) - it would be nowhere near £10,000. You are only 22 which suggests you have only been paying into the pension a short time (maybe even less than 4 years). If it is less than 2 years you may be able to quit the pension and then get your CONTRIBUTIONS back - LESS TAX RELIEF. Give us a few more details of how long you have paid into the pension, how much you pay per month and what amount your employer pays in each month. Is it a company scheme ?

[Adam Davies]

Hi
Andy 2 is correct in that most company pension schemes allow you a refund if you have been in it for less than two years[less tax],however most also hold on to that refund until you leave their employment.
After the two year clause you are unable to access this money until you are 50.
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Welsh Boy]

r-l

What you would need to do is contact the company behind the pension scheme and ask them what is available to you, there are so many varying schemes that advice from them should be your first port of call. However I endorse what has already been posted and please consider carefully using any pension benefit ( that is if you can draw on any of it at this stage ) as long term pension planning is going to be vital to even those as young as yourself.-Tony

[ian]

Hello.

i,m a male clinical nurse, working for the NHS, and when i stopped my NHS pension so it would go towards my creditors, they said that i could not have any refund, because i have been working for them for more than two years.

They freeze it until i retire,so what i will do is when my IVA has been completed, i will re-enstate my pension contributions.

Fortunately you dont have to retire from the NHS anymore,or not at 65 anway.

I hope this helps.

Regards

Ian