Pension

[Stueyspur23]

Hi all! I have recently entered an IVA and one of the modifications on the IVA is that i reduce my pension contributions down to the minimum amount my company offer, which i am in the process of doing. I did have one thought, and it is that i am still currently in the stage of my pension where i can claim it back as a bulk sum.

I am wondering, would i need to disclose that i have done this or could i claim it back and keep it safe somewhere for a rainy day, such as a car issue or other emergency.

I dont want to take the risk and see it backfire on me!!

I am loving the fact that i am now on the road to financial freedomand the damage to my credit rating is a small cross to bear.

Some advice would be lovely!

[MelanieGiles]

If you turn your pension fund into cash it then becomes a windfall which would need to be declared for the benefit of creditors.

Great news that you are finding the IVA is really working for you now.

[Stueyspur23]

Do you ever sleep Melanie?!!?? Probably best to leave it where it is then and continue to make small payments as allowed by creditors?

[jripley]

I have a Govt./Superannuation scheme. I did not think that I had any choice in payments. I am about to go BR., Is there any possibility then ofthe OR saying that I have to make lower payments as I did not think that this would be allowed by employers

[MelanieGiles]

No - if the pension is being deducted from your salary, it is unlikely that the OR will ask for payments to be reduced or suspended.

[Stueyspur23]

melanie i am guessing that this is a normail request for an IVA then, or should i feel hard done by?

[David Mond]

Keep your pension going by making the reduced payment - it will be better for you in the long run.

[MelanieGiles]

I rarely see pension modifications these days, but as you have the disadvantage to have one definately keep the pension going - it is probably still the most tax efficient way of saving money for the future.