If you have been paying into a pension fund...?

Question

is there any way to get this money back if you would rather invest it elsewhere?

Answer 1

If it's something called a personal pension, no.

If it's a company scheme and you have been a member for less than two years, you are normally entitled to a refund of your own contributions (less certain deductions (eg tax, currently at 20%) required by law).

An exception might be where ALL your pension benefits (except any state pension benefits) have a capital value of under £16,000 and you are aged at least 60, in which case you may be able to take the lot as cash (again, there will be a tax deduction).

Lots of helpful free info from:

http://www.pensionsadvisoryservice.org.uk/

Answer 2

I believe all Company Schemes must, by law, permit you to transfer the fund value into your own Self Invested Pension Plan (SIPP).

(If the company fund is a 'Final Salary Scheme' get professional advise before considering a transfer).

You then control the buying and selling of shares etc. HOWEVER you can't get hold of the money until you Retire.

You can continue to pay into SIPP and get Tax Relief on your contributions.

You can Retire from a SIPP if you are at least 50 (or, after 2010, at least 55) ... when you Retire you can take the 25% Tax Free lump sum and use the rest to buy an Annuity or continue to invest the fund (known as Drawdown option).

NB> You can have as many SIPP's as you like, and even open a new SIPP after Retiring from the first .. and you can carry on working (and making contributions) as well as taking a pension from a SIPP.

Answer 3

If you are paying into a 401(k) plan, you would have to quit your job and roll it over into and IRA or another 401(k). A plan should have several options from long term growth for younger participants to income generation for those close to retirement age.

Check your vesting requirements first or you may shoot yourself in both feet.