'Cashing in' Company Pension
Discussion
Hi All,
I'm sure I'll need an IFA for this, but it would be good to know if it's possible before I start knocking on doors and being billed for money.
Back-story -
Had a nasty accident back in the summer, NHS tried their best to fix it, but it hasn't worked and my surgeon tells me that they'll have to fuse my right Elbow (I'm right handed) this of course will make driving difficult, if not impossible and I'd never be able to do any of my hobbies again - which to me means no life at all, I live for my hobbies, also my business probably wouldn’t survive me being immobile.
I have an appointment with a private consultant tomorrow, this chap has rebuilt some seriously smashed up sports people, but of course there's a cost, a BIG one probably.
I have £5k in savings, but I don't think this will touch the sides. I'm not a home owner and self-employed and the business has gone down the crapper because I've spent 6 months in and out of hospital and doped out of my eyes on Tramadol so I have little income to prove and my credit file has been battered with reminders and such because I let things slip whilst I was in hospital – so lending the money is virtually impossible.
The only asset I have of any worth is my old RBS staff pension, transferable value c£20k. A quick Google tells me I can cash out 1/4 pretty easy if I was over 55, but I'm 30.
Does anyone know of ANY way of cashing it in? The only avenue I know a tiny bit about is I can transfer it into investment property. My folks own a couple of investment places. Could I 'invest' my pension into one of them, pay my folks and they could pay for the surgery? I would of course not act on my 'investment' and to be frank my folks are quite old, and as much as I love them, chances are they won’t be around when I retire and would have inherited it by then anyway.
P.S. I’m on PH quite often, but for the sake of pride I’ve sent up a new account for this post.
I'm sure I'll need an IFA for this, but it would be good to know if it's possible before I start knocking on doors and being billed for money.
Back-story -
Had a nasty accident back in the summer, NHS tried their best to fix it, but it hasn't worked and my surgeon tells me that they'll have to fuse my right Elbow (I'm right handed) this of course will make driving difficult, if not impossible and I'd never be able to do any of my hobbies again - which to me means no life at all, I live for my hobbies, also my business probably wouldn’t survive me being immobile.
I have an appointment with a private consultant tomorrow, this chap has rebuilt some seriously smashed up sports people, but of course there's a cost, a BIG one probably.
I have £5k in savings, but I don't think this will touch the sides. I'm not a home owner and self-employed and the business has gone down the crapper because I've spent 6 months in and out of hospital and doped out of my eyes on Tramadol so I have little income to prove and my credit file has been battered with reminders and such because I let things slip whilst I was in hospital – so lending the money is virtually impossible.
The only asset I have of any worth is my old RBS staff pension, transferable value c£20k. A quick Google tells me I can cash out 1/4 pretty easy if I was over 55, but I'm 30.
Does anyone know of ANY way of cashing it in? The only avenue I know a tiny bit about is I can transfer it into investment property. My folks own a couple of investment places. Could I 'invest' my pension into one of them, pay my folks and they could pay for the surgery? I would of course not act on my 'investment' and to be frank my folks are quite old, and as much as I love them, chances are they won’t be around when I retire and would have inherited it by then anyway.
P.S. I’m on PH quite often, but for the sake of pride I’ve sent up a new account for this post.
The brief answer is no. Pension investments into property are limited to commercial property not residential property so that wouldn't be an option. The only was you would be able to access the benefits early would be in the event of serious ill health. Pensions are designed to prevent people accessing the funds early for other things, although I understand it is a means to an end in your situation.
Your best bet in my view would be to beg/steal/borrow from friends & family and plead to their better nature.
Your best bet in my view would be to beg/steal/borrow from friends & family and plead to their better nature.
As above.
The only circumstance that you can access you pension before age 50 (age 55 from April 2010) is if you retire under ill health.
If you are employed by the company there is likely to be a provision in the rules of the pension scheme such that you can drawer your pension early if you can no longer carry out your duties. As you no longer work for the company it is unlikely there is such a provision for you.
If there were such a provision you wouldn't be able to take it as a cash lump sum (unless you are expected to live less than a year) and would have to draw it as a pension which would be a small (judging by the transfer value of £20k) and not offer the size of funds that you need. No harm in asking your pension scheme trustees (via the administrator) - details on your benefit statement or transfer value information.
Sorry not to provide better news.
The only circumstance that you can access you pension before age 50 (age 55 from April 2010) is if you retire under ill health.
If you are employed by the company there is likely to be a provision in the rules of the pension scheme such that you can drawer your pension early if you can no longer carry out your duties. As you no longer work for the company it is unlikely there is such a provision for you.
If there were such a provision you wouldn't be able to take it as a cash lump sum (unless you are expected to live less than a year) and would have to draw it as a pension which would be a small (judging by the transfer value of £20k) and not offer the size of funds that you need. No harm in asking your pension scheme trustees (via the administrator) - details on your benefit statement or transfer value information.
Sorry not to provide better news.
Feel for you mate... big question is - was the accident someone else's fault?
If so, this is exactly what personal injury litigation is for. Any insurer faced with your dilemma - ~£20k for an operation plus a smallish compensation versus the next fifty years' severe loss of function and enjoyment would jump at the chance to pay privately.
If so, this is exactly what personal injury litigation is for. Any insurer faced with your dilemma - ~£20k for an operation plus a smallish compensation versus the next fifty years' severe loss of function and enjoyment would jump at the chance to pay privately.
Hi,
Thanks for the replies. Accident was entirely my own fault, excessive speed + pre-holiday recklessness and BAM bones flying everywhere - not motor / road related.
But good news, spent a couple of hundred on a private consultant, assured me the NHS guy was wrong/miss-guided offered an alternative for about £20k, read my expression like a book and offered to add me to his NHS list. Have to pay for another consult in 3 months, couple of x-rays, £500 tops and they're going to do the lot via the NHS - result.
And the Yanks say our health system doesn't work!
Thanks for the replies. Accident was entirely my own fault, excessive speed + pre-holiday recklessness and BAM bones flying everywhere - not motor / road related.
But good news, spent a couple of hundred on a private consultant, assured me the NHS guy was wrong/miss-guided offered an alternative for about £20k, read my expression like a book and offered to add me to his NHS list. Have to pay for another consult in 3 months, couple of x-rays, £500 tops and they're going to do the lot via the NHS - result.
And the Yanks say our health system doesn't work!
Edited by PickledPete on Thursday 4th February 19:00
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