Pension advise please.
Discussion
Looking for some advise although I feel I already know the answer!
I started a private pension when I was 18. Over 5 years I paid approx £13k into it. Due to a mix up I also have another pension with £900 in. I now have an NHS pension and it is too late to transfer the money into it as it had to be done in 1st year of employment. The pension was set up so I can withdraw 25% lump sum at 35.
What are my options for the pensions? Am I right in thinking that I cannot get any money out of it? I would be prepared to to take a massive hit on it, for example paying a 3-4k redemption fee to get 8-9k out. Is there an option to do that and if I can't is there a pension I can transfer it into that would enable me to do that.
Excuse my ignorance, I received bad advice as youngster and it is a bit of a mess now. A pension of 13k is not much use and I feel like the money is dead.
Cheers in advance.
I started a private pension when I was 18. Over 5 years I paid approx £13k into it. Due to a mix up I also have another pension with £900 in. I now have an NHS pension and it is too late to transfer the money into it as it had to be done in 1st year of employment. The pension was set up so I can withdraw 25% lump sum at 35.
What are my options for the pensions? Am I right in thinking that I cannot get any money out of it? I would be prepared to to take a massive hit on it, for example paying a 3-4k redemption fee to get 8-9k out. Is there an option to do that and if I can't is there a pension I can transfer it into that would enable me to do that.
Excuse my ignorance, I received bad advice as youngster and it is a bit of a mess now. A pension of 13k is not much use and I feel like the money is dead.
Cheers in advance.
I think Musclecarmad is the expert on here, so hopefully he can point you in the right direction.
However, my (limited) understanding is that you can't take money from a pension fund without effectievly 'retiring', and you can't do that before age 55 (was 50) except for certain professions (e.g. professional footballer etc).
Hopefully MCM has some better news!
Sidicks
However, my (limited) understanding is that you can't take money from a pension fund without effectievly 'retiring', and you can't do that before age 55 (was 50) except for certain professions (e.g. professional footballer etc).
Hopefully MCM has some better news!
Sidicks
sidicks said:
However, my (limited) understanding is that you can't take money from a pension fund without effectievly 'retiring', and you can't do that before age 55 (was 50) except for certain professions (e.g. professional footballer etc).
Sidicks
Thats what I used to be for 8 years not sure if it is relevant or not. I also get a non contributory bonus added to the pension at 35.Sidicks
Ruskie said:
sidicks said:
However, my (limited) understanding is that you can't take money from a pension fund without effectievly 'retiring', and you can't do that before age 55 (was 50) except for certain professions (e.g. professional footballer etc).
Sidicks
Thats what I used to be for 8 years not sure if it is relevant or not. I also get a non contributory bonus added to the pension at 35.Sidicks
Sidicks
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
musclecarmad said:
On blackberry so excuse short answer. Essentially no you can't get the money its there for your pension. You may have some good news in your original contract allowing early ret etc so read it but no that's a downside. You need to make sure it is in a good fund or you could move to a sipp and just go ultra high risk eg banking shares and hope for big gains or big losses!
I have a feeling that I transferred it into a SIPP a few years ago due to some regulation change. High risk sounds the way to go as nothing to lose. I thought I was stuck. I can't believe I can't withdraw it even with a massive penalty.The Leaper said:
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
First year in my current job was very stressful so old pension was at the back of mind until I realised it was too late.The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
I feel like I have totally wasted the money to be fair.
musclecarmad said:
Ruskie said:
musclecarmad said:
On blackberry so excuse short answer. Essentially no you can't get the money its there for your pension. You may have some good news in your original contract allowing early ret etc so read it but no that's a downside. You need to make sure it is in a good fund or you could move to a sipp and just go ultra high risk eg banking shares and hope for big gains or big losses!
I have a feeling that I transferred it into a SIPP a few years ago due to some regulation change. High risk sounds the way to go as nothing to lose. I thought I was stuck. I can't believe I can't withdraw it even with a massive penalty.Ruskie said:
The Leaper said:
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
First year in my current job was very stressful so old pension was at the back of mind until I realised it was too late.The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
I feel like I have totally wasted the money to be fair.
Welshbeef said:
Ruskie said:
The Leaper said:
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
First year in my current job was very stressful so old pension was at the back of mind until I realised it was too late.The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
I feel like I have totally wasted the money to be fair.
Ruskie said:
Welshbeef said:
Ruskie said:
The Leaper said:
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
First year in my current job was very stressful so old pension was at the back of mind until I realised it was too late.The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
I feel like I have totally wasted the money to be fair.
If you tfrd it into nhs at that point it would still be worth £13k.
Really at that age you should be very gratefull to have a pot that large as the vast majority have nothing they don't think about their retirement thankfully you were guided correctly to invest.
Now stop thinking you can get your cash out as you cannot you have a contract you have a pension investment long term. There is no lost money unless your fund has to date performed poorly.
When you leave the nhs in the future you could then pull this £13k one into the next jobs one.
Well it's not going to bring me much in terms of money long term without subsequent investment, which I won't do due to paying into my NHS pension now.
musclecarmad said:
well go balls out, all or nothing then on some leveraged ETF fund or spread it in high risk shares or just punt the whole lot on a whim if you are willing to risk it - your 13k could become nothing but it could also become 40k quite easily.
Since OP is only 30, lets say he has 35 years to retirement. Over this period, £13k is far from nothing and could net him a few grand a year in pension. There's not need to be so gung-ho as to put in all on red, so to speak. I agree that a higher risk investment would be appropriate, but not a wild win or lose punt. I'd suggest a simple world emerging markets fund. If you made 5% pa over inflation that would be a pension in the region of £4k. Welshbeef said:
Ruskie said:
Welshbeef said:
Ruskie said:
The Leaper said:
Ruskie,
The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
First year in my current job was very stressful so old pension was at the back of mind until I realised it was too late.The bit in your OP about the incoming transfer having to be done within the first year of joining the NHS Pension Scheme is somewhat unusual so I had a look at the 1995 section consolidated regulations that govern that Scheme, and what you say is correct. Not a good feature in my view.
R.
I feel like I have totally wasted the money to be fair.
If you tfrd it into nhs at that point it would still be worth £13k.
Really at that age you should be very gratefull to have a pot that large as the vast majority have nothing they don't think about their retirement thankfully you were guided correctly to invest.
Now stop thinking you can get your cash out as you cannot you have a contract you have a pension investment long term. There is no lost money unless your fund has to date performed poorly.
When you leave the nhs in the future you could then pull this £13k one into the next jobs one.
Well it's not going to bring me much in terms of money long term without subsequent investment, which I won't do due to paying into my NHS pension now.
I am 28 by the way. I think will non contributory my pot is about 17k. Will have a look at sipp now.
http://www.jameshay.co.uk/Sipp/index.aspx
This is where my money is currently. Anyone any experience with this company?
This is where my money is currently. Anyone any experience with this company?
musclecarmad said:
otherman said:
musclecarmad said:
well go balls out, all or nothing then on some leveraged ETF fund or spread it in high risk shares or just punt the whole lot on a whim if you are willing to risk it - your 13k could become nothing but it could also become 40k quite easily.
Since OP is only 30, lets say he has 35 years to retirement. Over this period, £13k is far from nothing and could net him a few grand a year in pension. There's not need to be so gung-ho as to put in all on red, so to speak. I agree that a higher risk investment would be appropriate, but not a wild win or lose punt. I'd suggest a simple world emerging markets fund. If you made 5% pa over inflation that would be a pension in the region of £4k. Also that £13k did it represent his age divided by two as a percentage of his annual salary if so it's ideal clearly when young your progressing from the lower salaried roles as you gain experiance and professional qualifications. Plus if his pot is currently worth £13k he has most certainly not paid that much in 20 or 40% will be his tax and there may be employer contributions too
Ruskie said:
Looking at the figures the two have shrunk from £11,500 to £10,700 and £890 to £625 since 2008. But I am assuming all investments of this type suffered due to the recession?
pretty much some vastly worse some better. Rber the draw was 7,000 back then and now it's 5,300 odd so you could say your decrease is better than average. Plus over the next 35years it will bounce up and down as there will be many booms and busts it's the normal economic cycle. The key thing is though as your approaching retirement if you have your pension all in stocks you could retire on a bust and therefore lose out on a notable amount of monthly pension. That's why it's key or less risky to start moving to less risky options even cash holding as you get to those years to essentially bank your pension.
It's been on the news where people decided to work on an extra year in the recent bust but by doing so and with the extra years pension payment they have lost thousands from their annual pension and there is nothing they can do about it infact it would have been more beneficial for those poor hard working people to have quit totally a year before even losing a years salary!!!
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