Pension funds transfer

[The Phantom]

Hi there

maybe someone here can help
Many moons ago in 1994 an advisor from NatWest convinced me when I arrived in the UK to take out a private / personal pension with them and to opt out the government one. I paid into this plan for a short while until my employer made me redundant in 1995 and I couldn't afford the contributions anymore
My new employer had a company pension scheme which was far better and I joined that one instead once I became eligible in 1996 and have paying into that ever since as I am still with that employer.
I still have the NatWest one with currently £245.- in it which reduces year by year due to NW fees. I have asked the pension advisor at work a few years ago whether I could transfer the money into my pension fund at work, ( at the time it was about £340.-) and he said after all the transfer fees it would not be worth it. I checked with Nat West and they said they couldn't understand that as they would not charge anything for a transfer
but they also won't pay the money out to me either
So does that mean I can't do anything with that money, after all it is mine but I cannot gain any access to it ?

[Shoestring]

Last year I was paid a sum similar to the amount you mention for a company pension scheme that I long since had forgotten about and which was "orphaned" so to speak. I can see no reason why you shouyldn't be able to do the same unless the law has changed...

Contact the pension trustees of the occupational pension scheme you wish to cash or transfer and ask them to provide a solution. Insist it be in writing. Otherwsie, contact the Pension Advisory Service (see: The Pensions Advisory Service (TPAS) - Occupational Pensions)

You might also like to take a look at: Pension Fraud

Despite the conspiracty theorist ranting style of the site, I have checked the maths of the Annuity payments and it seems spot on. I also conducted a small (minute) amount of research to see if what was being said was true and it also seemed to be correct (please note caveats "seems" and "seemed" which are placed here for a reason - I am no expert!)

But judge for yourself.

Shoestring

[The Phantom]

Many thanks - I will write to NatWest straight away as the money (my money) just dwindles away year by year otherwise
Incidentally the "pension advisor" at work said to just leave it and it will reduce it self to zero over the years. Not really my ideal solution as it is my money that reduces itself to zero and I could think of better things to do with it to be honest

[Shoestring]

So much for being an "advisor" eh...

Shoestring

[The Phantom]

I think he just couldn't be bothered with it as it is not a huge amount and the paperwork involved probably didn't suit him.
That was the impression I had anyway, but there you go
Since he gave me that advice I lost another £100.- out of that plan
I just posted my letter to NatWest and see what they say

[moneyhelp]

I am interested in the outcome of this Phantom if you are still around on here.

I have just called Legal & General about my company pension scheme which I stopped payments approx 2004 due to longterm illness - they guy told me I have £1.5 in my account, I asked him for a statement of this and how I go about cashing it in as I am in financial difficulty right now and want to get as much money as I can - he told me I cannot cash it in and have the money, I can only transfer it to another pension.

He maybe right, but surely this is MY money and I am entitled to do with it what I like?
I know this money is dwindling daily and it would help me out no end if I could get my hands on it.

Anyone out there have any answers for me???? PLEASE!

[beccus]

moneyhelp
A pension is designed as investment for retirement purposes, there will be an age limit as to when you are able to remove the money from your pension, and only then to purchase an annuity.

Hope this helps
Becca

[The Phantom]

Hi Moneyhelp

I tried to transfer it from NatWest to my current company pension scheme, but guess what - your current pension scheme provider does not have to ACCEPT the transfer !!
In my case my employer's / company scheme refused the transfer !!!!
So I am back to where I was before
I have a dormant old pension scheme with MY money in it which I truly cannot do anything with
They will not pay it out (£300.- hardly a lifetime investment) and I cannot transfer it either, so it will truly reduce itself to 0 over the next years , a complete waste of MY money !
I think there should be somewhere you should be able to complain about it, but I guess there won't be

[moneyhelp]

Thank you for your replies so quickly too.

This has made my blood boil to be honest. I was forced into leaving my previous job due to ill health, struggling on benefits knowing that I have £1.5k sitting dwindling away.
By the time I am at an age where I can take it out there will be nothing left.

This suxs BIG time!

[Shoestring]

Be wary of putting any money into an annuity unless you absolutely have to. Figures I've run on Excel SS show that pension funds plan to keep about 40% of the overall cash pot which they use to offset payouts made to long life customers. The normal annuity is set for 21 years for a man and 24 yrars for a female (as I recall), after normal retirement age. In other words men are expected not to live past 86 years and women 89 years (if the 65 pensionable age cutoff is used across the board).

The 40% includes their heafty charges and commissions and God only knows what else. Basically YOU are paying THEIR pension when you take out an annuity and the bosses insist on guaranteed schemes or invest the funds themselves into a pension plan over which they have complete control.

Be cautious.

Shoestring

[The Phantom]

Stable doors closed after horse ran away....
The money I have with NW is lost, I only have got my work based pension scheme now.
As I have been with my current employer for over 10 years it has become non-contribution, i.e. only my employer now makes contributions, I don't anymore, so that helps a bit financially for me and I still build up a pension, but I am only 37 (38 this Sunday ) so long way to go yet before even thinking about cashing anything in

[joneshousehold]

What you really need is an independant financial advisor here. Mine told us about all the options with a company pension and we chose the best option and took the money out into a personal pension a few years back. It's doing really well now after the inital hit on withdrawal.

Can't understand why the amount only reduces year on year with yours. Surely you have some earnings from the scheme - that's the whole point. Mind you I do not have a lot of knowledge about these things - I leave it to my financial advisor.

You really want to chose an advisor on personal recommendation too as some of them can be a bit fly. Ask around people you know and see if anyone has a gem they use.

[beccus]

moneyhelp

If you have been forced to leave work through ill health some companies make allowances for this - when i worked in pensions there were certain policies that had a clause written into them, I would maybe try phoning the pension company and explaining your circumstances... I'm not saying you will definately get this, just that it is an option on some policies.

Also, you will still be asked to purchase an annuity for income, rather than just getting the lump sum.

HTH
Becca

[The Phantom]

Originally Posted by joneshousehold

Can't understand why the amount only reduces year on year with yours. Surely you have some earnings from the scheme - that's the whole point. Mind you I do not have a lot of knowledge about these things - I leave it to my financial advisor.

It's because it is only a small amount (less than 300 GBP) and I don't make anymore contributions. NatWest's charges for running this scheme are higher than the return, so the money left reduces over time until it will reduce itself to zero at some point. I tried to transfer it out and into my pension scheme at work but they refused to accept the transfer.Apparently once they accept it, they have to guarantee to me that it will be doing well, as it is a final salary scheme and that's why they rarely accept transfers. I don't know too much about it either, but that's where I am now

[moneyhelp]

Originally Posted by beccus

moneyhelp

If you have been forced to leave work through ill health some companies make allowances for this - when i worked in pensions there were certain policies that had a clause written into them, I would maybe try phoning the pension company and explaining your circumstances... I'm not saying you will definately get this, just that it is an option on some policies.

Also, you will still be asked to purchase an annuity for income, rather than just getting the lump sum.

HTH
Becca

Yes I had read that on the link further up in the thread, so I checked it out - but thank you for pointing this out.
I have an appointment with CAB in August, I will run this past them and see what they say. I know laws is laws, but if I can fight this and prove I desperatly need some money (ie a bed to sleep on or a chair to sit on) I will do what I have to do - thanks again folks

[joneshousehold]

Perhaps if you can start your own personal pension plan (can't remember the correct term for it) you might be able to move the money into that instead.

[The Phantom]

That's what my pension advisor from work said
(I should start up a new one where the little money that's with NatWest will do better), but I have my doubts it will make a difference as I am not making anymore contributions to this, I am building up my work's pension instead
I believe these £250 odd pounds would do just as well in a savings account somewhere, but they won't pay it out
If they did I would probably invest it into my sons' child trust fund, but again, they won't give it to me which is very annoying. It should be my decision what I want to do with this money