Is it wiser to leave pension funds where they are or use them to end IVA ?

[Ann.z]

Have been in iva 5out of 6 years with most probably another year on top it has had an impact on the marriage and I currently live with friends. I pay 1/2 of the monthly payment to my estranged husband so we don't loose the house. I have been traced by a company who I apparently paid into with a job which can't have been long and told I have x amount of money to claim. As I didn't know about this pension is it possible to release some cash and offer F&F or will they expect all the money. I have approx 2 years to go is it wiser to leave funds where they are or just end theIVA.

[kallis3]

Hi,

You could release it but you might find that the company ask for all of the money.

You could offer a full and final on the grounds that if it's not accepted you won't draw down the pension.

It also depends on how much the pension is and how much you still owe and whether or not you are likely to need this money in the future.

[Lisa Thomas]

If you weren't in the job for very long you might find the monies due to you are nominal and may not be enough to make a sensible F&F offer.

It really depends on the figures.

I don't normally like recommending people cash in their pensions as it leaves you nothing for the future but it could be a way out.

Nb Your credit rating will still be affected until the 6 year mark regardless of whether you finish early.