Getting out of a Self Administered Pension Schemes

L

littlet

Guest
Hi Guys,

I'm self employed so I joined a Self Administered Pension Scheme a couple of years back when i made a few quid. Sine then I've had little money to put into the scheme and I've just being paying fees each year. While I realise the fees are necessary the problem is the fees will eat up my funds before I reach retirement age. I was wonder could I just pay the tax on the initial lump sum investment and get out of the pension before retirement age?

Thanks
 
I don't believe you can get a refund of the funds (which I presume is what you are talking about) but you should be able to transfer to another fund where charges may be lower. Alternatively you could request lower fees from the pensioneer trustee? It obviously makes no sense to have a pension where the fees will eat into and erode the pension fund over a period of time.

Without knowing more of the facts it is hard to provide more information.
 
Thanks forthe reply. Can I pay my taxes on the amout in the pension and withdraw from the pension completely or must I transfer to a different pension?
 
Pension funds can only be refunded to the company in exceptional circumstances, I think you must have genuine reasons for seeking the refund, i.e. that the contribution was an error / mistake. The Revenue have to be in agreement and I think the Pensions Board also need to give approval. If the refund is allowed it will be paid back to the company and be a taxable receipt in the company i.e. treated as income.

I think you should seek professional advice on this from an independent financial advisor who will sit down and outline your options to you.
 
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