pension rights

[stevec000]

hi all,
my dad worked hard all his days and had a few pensions on the go.
He retired and got someone in to help sort things out.
this person said with the larger pensions we will get some of the money in bulk but needs to reinvest the rest so he gets a monthly income, which sound fair.
but now he is very sick and may not have long and he wants all his money back that got invested for one last holiday with my mum. can this be done?
many thanks

[MichaelZZ]

It depends where it is invested. In some cases it is possible to withdraw funds but with a penalty of a few month's loss of interest. In other cases, no withdrawals are permitted.
I suggest that you speak to the people who the investments are with.

[EDDIE51]

Go back to the person who helped sort it out and explin the problem , they may be able to get the cash out again as a lump sum but it is not certain.
depends on the exact type of investment.

[factor-fiction]

If it was a pension plan he can't take more than 25% as a lump sum. However I recall there may be an exception for 'trivial' pensions . I'll look it up. What is the approximate value of the pension fund?

[factor-fiction]

Also, if it was a company scheme and he had been contributing for less than a limite dperiod (one or two years, I can't remember which) and wants to opt out now he may be able to get the contributions back (minus tax)

[stevec000]

hi factor i think it was £7000 which he was paying for years into

[factor-fiction]

http://www.direct.gov...lPensions/DG_10027141

"Lump sums from small pension funds
You may be able to take your whole pension savings as a cash lump sum, with 25 per cent tax-free. To qualify, your total pension savings from all sources must be £18,000 or less."

This must be the total value of ALL pensions.
If he'd been paying in for many years I'm surprised the fund is worth only £7000. DId you mean £7000 a year? Was it an employer's pension scheme or a private one where he paid a few pounds a week

[chrissa1]

Both myself and my late husband "raided" our pensions about 10 years ago when our business needed cash. I think we got about three quarters of the sum. This was a great help at the time but now I am a widow, it has hugely depleted the amount I am getting to live on now.

Your father's pension may not be given to your Mum in the event of his death as in my situation, but I think he should find out if this is the case as maybe, a holiday would be lovely for them but if it will affect your mother's income for the years to come, I think that that should be thought of before taking money out.

I maybe wrong and hope things get sorted for him.

[factor-fiction]

Yes, I think the option Chrissa has referred to is where you sell your pension rights to someone who gives a lump sum in return. They usually advertise it as 'unlock your pension'.
It may be worth investigating but I know the advice is normally 'not to touch them with a bargepole' because they offer such a low amount, although in your case it may be worth considering if the mum could forgo her share of the pension.

[factor-fiction]

http://www.lovemoney....ur-pension-funds-scam

[factor-fiction]

Here's another article - this one is more in favour of it.
http://cash-in-pensio.../unlock-your-pension/

[chrissa1]

We didn't go the one of those companies factor but went straight to our Pension company.
I agree, as with PPI companies, you don't need to go through a third aprty who rip you off. It can be done by yourself.

[factor-fiction]

I'm not sure how you managed it chrissa, but these are the rules
http://www.direct.gov...lPensions/DG_10027141

[chrissa1]

It wasn't our State Pension we were "raiding" but private pensions we had been paying into for years.

[factor-fiction]

I realise that. That's why I included a link about 'personal pensions'.

[chrissa1]

Soz factor. Classic case of seeing the Directgov page and not actually reading it. Duh @ me.

[factor-fiction]

Thanks Chrissa. I must admit when you posted I did go back and double check I'd linked to the right page