Pension Question...

Post by **wheresmygiro?** » 18 Aug 2016, 20:34

Hi all.

I've been living in Oz for three years and was a part timer at royal mail for around three before that. Got a letter through today regarding my pension...which is minimal at best. Just wondered can you opt out and take the cash? Obviously if you can I imagine there is a charge. I know I can ring pension number but it's shut now so wondered if anyone had a clue. In previous jobs I've taken whatever money is there when I've left.

Cheers.

Post by **RobertT** » 19 Aug 2016, 04:20

wheresmygiro? wrote:I've been living in Oz for three years and was a part timer at royal mail for around three before that. Got a letter through today regarding my pension...which is minimal at best. Just wondered can you opt out and take the cash? Obviously if you can I imagine there is a charge. I know I can ring pension number but it's shut now so wondered if anyone had a clue.

Because you were in the job for 3 years and have been gone for the same time, there is no option to take the cash out unless you’re 55 or over. But you can transfer it to another pension.

In previous jobs I've taken whatever money is there when I've left.

You can quite often take the money from a pension when you leave a job, but only if you’ve been there a short time and if you do it at the time. You worked for RM for too long I’m afraid. However you only get your own contributions back minus tax, you lose whatever the employer has put in.

If you hadn’t cashed in all your previous pensions, the total may well add up to a reasonable amount? You have to live off something in retirement!

Post by **baldrick** » 19 Aug 2016, 07:37

You will probably get the option of taking your small pension or a lump sum in lieu when you reach 60 or 65.
I worked in a General Motors factory for 12 months in 1973, paying into their pension scheme. I was 65 last month and got a letter from the accountancy firm dealing with their now wound up pension scheme, saying I could get a pension of £3.14pa or a lump sum of £65.94, both taxable.
I took the lump sum.

Post by **RobertT** » 19 Aug 2016, 15:57

With the time frame wheresmygiro? described, he/she will have been in the DC scheme. So the money in their pension can currently be accessed from 55 onwards if they choose.