Pensions

[ddtwelve]

Hi all ive got 3 pensions that been frozen 6 years ago and at the moment they are totaling just over £11000 should I withdraw and use the money to pay off debts or get a company to invest it in stocks and shares ??

[Lez72]

With all due respect I don't think anyone can really answer that one for you. All they can do is give their opinion so here's mine.

If it were me I would use it to pay off my debts, especially if those debts are credit cards/loans that are getting bigger.

Stocks and shares can pay off but I don't know enough about them to ever take the risk. I certainly wouldn't let a company take care of it for me either.

[unfazed]

I don't think you can get at it until you retire, which appears to be the case in Ireland. I tried.

[lew600fazer]

Hi all ive got 3 pensions that been frozen 6 years ago and at the moment they are totaling just over £11000 should I withdraw and use the money to pay off debts or get a company to invest it in stocks and shares ??

If you can withdraw them I would put them into premium bonds you never know there is always the chance of the a decent price, also you can with draw the money at any time. I would not trust ANYONE to look after my money, at least your bonds are safe.
If you are managing your debts okay live with it unless it is WONGA .com. There is always the possibility once clear of debt you may be tempted to do something daft. Would £11k be life changing for you?
Just my opinion but every financial adviser I have ever met is really only interested in what he can cream off.
Lew

[chris.biker]

Be aware that there are a lot of rogue companies trying to play with your pension or to take a large amount of your pension from you, by offering to help you cash it early. do your home work, good luck.

[mtread]

As said, nobody on here can give you the sort of advice you really need, but I think you need to consider:
What are your short term and long term needs ? Do you have other 'rainy day' savings if this was spent ?
How old are you, and how close to when you want to retire ? When do you want to stop work ?
Will/are you accruing further pensions, and are they any good ?
£11K isn't a lot of money when spread over 20-30 years of retired life

[red98]

tough on this  ...as already said diffacult to answer...age has a lot to do with it and weather or not you have a current private pension or a state one...i think iam right in saying that a frozen pension still generates interest...iam in a simalar boat,no debts and own my house without mortage an oldie at 51....iam going to need some income and after working full time since i left school iam hoping i`ll be ok   ......so who do you ask ?..go to a financial advisor and hes going to charge you for his advice and wont be able to gaurentee it,leaving you with even less money  .......if you find the answer please,please,please let us all know....good luck

[NotAnotherHill]

I don't think you can cash in a pension. As far as I was aware, you can either transfer it to another pension, or leave if until it is due to mature. Ring the pension company. They will tell you what you can or can't do.

[red98]

iam fairly sure you can cash in a private pension....wont be face value though 

[ddtwelve]

Nope due to government legislation I can't get at it till I'm 55 so they say

[MEM62]

You cannot withdraw anything unless you are over 55 and even then the max you can take as a lump sum is 25% of the fund - once!  (The only exception to this being if you have a critical medical condition that drastically shortens your life expectancy) 

You don't say how old you are but if you reach retirement age without a decent pension pot what are you planning to live on when you stop working?  Or are not planning on taking retirement?
     

[red98]

this is tough  ....lots of people in the same boat and most sticking their heads in the sand  ...i know a few people who have retired in the last year or so and they are doing ok...state pension and a private one....iam 51 and an convinced that when i retire there wont be anything left in the pot....i have a couple of private  pensions which are not doing fantastically well but might just be ok.....my main worry is swmbo...a single mother when we got married and then a full time mum with part time job...wont have much of a pension,not enough to live on,her look out.....could be dead tommorow ,whats the point..................bloody women 

[Bubs348]

Surely buy a brand new Fazer thou  !!!!!!!

[Fazerider]

There are firms that specialise in "pension liberation"… there are steep charges to pay though, and then the Govt demands 55% (of the original sum) as punitive tax. Unless the few grand you would end up with will make a drastic change to your circumstances it's probably best left as it is.
If it's being managed poorly, you may be able to transfer the pots to a pension scheme from a different provider.


Red98, life assurance should give your missus some security. Don't overdo it though. You don't want her realising you're more use to her dead than alive.

[ddtwelve]

I'm only 43 so pension will be roughly worth nothing as government keeps putting up retirement age