Cashing an old pension policy

[4D]

I have an old pension fund that has not been used for 15 years. Does anyone have a rough idea how much it would be worth if I cashed in on it? As a percentage of the value?
Ta.

[Bogus Dave]

I'm not an expert, but how are people supposed to know, despite the extensive information given

[@MacPhlea]

I'm not a Financial Advisor but I don't think you can just 'cash in' a pension plan unless you are over 50... If you have another pension why not just transfer it into that? I've just consolidated 3 plans into one with Hargreaves Lansdown SIPP and now have complete control over where it is invested.

On a side, my other half had a pension plan that hadn't been used for a similar period of time and the management fees paid over the period meant it was worthless and was closed out...

[Arriba]

I'm not an expert, but how are people supposed to know, despite the extensive information given

   

[4D]

Hmmm, I always thought that an offer could be made on a fund value  
I could transfer it but I wouldn't mind a bit if cash now. I'm not quite 50 yet.  

[4D]

I'm not an expert, but how are people supposed to know, despite the extensive information given

Thanks Dave, but I was hoping that samdy was reading this. It could be a rough rule of thumb that you are offered e.g. 50% of the current fund value.

[@MacPhlea]

Trouble is with pension funds is that you received tax relief on it - as a result the rules for cashing out are completely different to ISA's and endowments

[4D]

You're right, I can't cash it I can only transfer it or wait until I retire 

[fatbasher]

I think you might have to wait till you are 55 now. The rule was changed a few years ago because my old Allied Crowbar give us £100 and we'll give -£100 back was one where I could take 60% of the fund at 50. Less tax of course. So I was going to use the lump to reduce or pay off my mortgage and cane my company pension for as long as I'm employed by them to make up a decent pot when I retire at about 96 if I'm lucky....

[leefer]

You are right Fatbasher.....and then you can only have a quarter of the value as a lump sum...the rest has to be a pension.

There are companys who will temp you to invest with them and they will give you slightly more than the quarter value.

This can lead to problems.

[janaage]

Under current rules, when you reach 55 years old, 25% can be taken as pension commencement lump sum, which is as others have said tax free.  The remainder can be used to buy an annuity or if you have a healthy pension pot go into what known as drawdown, which is worth reading up on.

Like I say these are current rules, by the time most of us retire there will be plenty more rules and regs to take into account, no doubt.

[Samdy Gray]

4D, more than happy to help.

Send me a PM and we can sort something out.

[Samdy Gray]

I think you might have to wait till you are 55 now. The rule was changed a few years ago because my old Allied Crowbar give us £100 and we'll give -£100 back was one where I could take 60% of the fund at 50. Less tax of course. So I was going to use the lump to reduce or pay off my mortgage and cane my company pension for as long as I'm employed by them to make up a decent pot when I retire at about 96 if I'm lucky....

Depends what type of pension it is. If the cash was higher than 25% pre April 2006 then it may be protected and you might still be entitled to more than 25%. Allied Dunbar were big in the exec pension market and if it's one of those you have then chances are the tax free cash entitlement may be higher than 25%.

Again, if you want me to take a look, more than happy to help.