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Hi all,

Anyone know if it's possible to cash in / cancel pension and get the cash?

Got about £15K in pension pot that I paid into for about 5 yrs. Changed job and got new pension and better scheme set up. Left old pension alone and am now thinking maybe I should get the money out, pay off a CC debt and put the rest into current scheme or invest.

Been told I can transfer but not get money out, anyone know if there is a way round this?

BF

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Hi all,

Anyone know if it's possible to cash in / cancel pension and get the cash?

Got about £15K in pension pot that I paid into for about 5 yrs. Changed job and got new pension and better scheme set up. Left old pension alone and am now thinking maybe I should get the money out, pay off a CC debt and put the rest into current scheme or invest.

Been told I can transfer but not get money out, anyone know if there is a way round this?

BF

Some schemes you can but you pay a heavy price in fees and also pay full tax on the contributions. Read the small print and take some professional advice.

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Hi all,

Anyone know if it's possible to cash in / cancel pension and get the cash?

Got about £15K in pension pot that I paid into for about 5 yrs. Changed job and got new pension and better scheme set up. Left old pension alone and am now thinking maybe I should get the money out, pay off a CC debt and put the rest into current scheme or invest.

Been told I can transfer but not get money out, anyone know if there is a way round this?

BF

Unless rules have changed recently, you can only pull out your contributions less any tax relief if you have been in the pension scheme for less than 2 years.

Only other way I know of is if you are 55 or over then you can take an early pension with 25% tax free lump sum.

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Unless rules have changed recently, you can only pull out your contributions less any tax relief if you have been in the pension scheme for less than 2 years.

Only other way I know of is if you are 55 or over then you can take an early pension with 25% tax free lump sum.

That is my understanding too, except that until APril 2010 you can also draw it early if you are aged 50-54

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Could you take out a loan that would be repaid from the pension provision when it arrives?

That's called a pension mortgage. If I buy property in the UK, I'll get one of those for the tax advantage[1].

[1] Corollary: if the tax advantage goes, I won't buy property in the UK either.

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I wanted to do this with my pension but was told I could only take half of it and the rest could only be used to purchase an annuity?

Slightly annoying as its your money yet the government tell you how you can use it.

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Trivial commutation when you are sixty,only applies to small funds of less than17.5k when 100% can be taken as a lump sum of which 25% is tax free.

As your fund is only 15K and as the trivial commutation limit will be increased over time, you should qualify then.

They have already shifted the trivial commutation age limit from 55-60,so they might put your pot out of reached again.

Edited by crashmonitor

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