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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
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Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I have two small private pensions which i stopped putting money

Resolved Question:

I have two small private pensions which i stopped putting money into over 5 years ago when i started paying into my work one - I work for local government.
Can I access these pensions as cash now as i would like to sue them to put down a deposit on a house.
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

From what I understand from your question, you have "left" that pension scheme as you stopped paying into the same. You don’t have to remain a member of your pension scheme and can stop paying contributions at any time. However, if you do stop, you will be treated as having left the scheme and your employer will also stop paying contributions.

Having said this, YES, you have options to take a refund.

If you leave your pension scheme, you do not lose the benefits you have built up. They continue to belong to you and you have several options for what to do with them. Your scheme administrator or pension provider should tell you which options apply to you.

How much refund you will get / how much will you be able to cash out will depend upon your type of scheme.

If you leave your pension scheme, you do not lose the benefits you have built up. They continue to belong to you and you have several options for what to do with them. Your scheme administrator or pension provider should tell you which options apply to you.

If you leave your defined benefit or money purchase pension scheme having been a member for less than two years, you may be able to take a refund of the contributions that you’ve paid, if the scheme’s rules permit this.However, the ability to take short service refunds from occupational defined contribution schemes will no longer be allowed from October 2015 onwards. If you have made any contributions using a salary sacrifice arrangement, these cannot be refunded as they are classed as employer contributions and must remain in your pension pot.

If you have been a member of a personal pension or stakeholder pension scheme, you only have the option of taking a refund if you’ve been a member for less than thirty days, and you haven’t made any contributions using a salary sacrifice arrangement.

In each case, the amount that you receive will have been subject to tax to take account of any tax relief you received when you paid contributions.

Contributions refunded from a defined benefit or money purchase pension scheme are taxed at 20% on the first £20,000 and at 50% on the remainder.

The amount you receive back from a personal pension or stakeholder pension scheme is the contributions that you paid net of basic rate income tax relief.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question,

Warm Regards,
Customer: replied 1 year ago.
You haven't answered my question, I an not stopping paying into my current pension scheme with my employer, I was asking about an old private pension which I payed into from 22 - 39 years of age. I have been told I cannot cash it until I am 55 an d want to find out if this is true - I am 44.
Expert:  Rakhi Vasavada replied 1 year ago.
Dear *****h,

Hello and welcome again. Thank you this clarification.

Thanks for adding some more information. Yes, in that case, you will be able to cash out only after you attain the age of 55 years. After that depending upon the total pension kittly you have you will have the option to cash out tax free up to the extent of 25%.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question,

Warm Regards,
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4496
Experience: Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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