can u cash in a pension

B

bilic04

Registered User
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my husband was let go from his job in july this year , he has only just managed to get work , startin on monday. The problem is he will not be getting paid till the end of january as he has to a month in arrears.

so basically we have no money left over to pay for mortgage and all the other xmas expenses.
a friend of mine suggested we cash in his pension from a previous mortgage that he contriuted to .
I thought you could not cash in a pension any more but my friend says u definately can cash it in but you pay alot of tax on it.

so can he contact mercer to get the money for the pension.

thanks
 
What do you mean by a "pension from a previous mortgage"?

The short answer is: it's unlikely that you can cash in the pension.

To be more specific, one would need to know is it an occupational pension or a private personal pension? Is it a DC or a DB pension?
 
sorry meant pension from a previous job , he paid into the pension every month through his salary.

sorry
 
Even if you can, I'd be very reluctant to cash in a pension to cover what sounds like a very short-term cashflow problem. IMHO you'd be far better getting a small loan to cover you till your husband gets paid in his new job.

As an aside, has your husband checked whether he's entitled to a refund of any tax paid this year? If he is, that might tide you over.
 
unfortuately our very unhelpful have refused us a short term loan or overdraft as my husband does not have a income at the moment , i have explained that he has just got a new job and the income will be over into the bank account then,

as you can imagine we have decided once we get over this we wil be changing bank after 10years of banking with them and never going into overdraft or having insufficent funds in the account this is how we are treated when we need there help.

will contact to see if pension can be cashed it is not an idea thing to do but i have tried all other options , we are trying to sell a car at the moment that would have ment we would not need to do this but it has not sold in 5 months and very much doubt it will sell now so close to xmas.

thanks
 
Hi.

I would agree with others do not cash in pension even if it is possible.

I would suggest you try your local Credit Union they would be more understanding and would probably help you.

The Banks as you know only give loans in Millions to Solicitors with no security.

Good Luck.

rochs
 
AFAIK, you can not receive cash benefits under any policy until you have reached retirement age.
 
Yes - other than in the case of cashing in an occupational pension fund after leaving a job with less than 2 years of membership of the scheme or in certain cases of taking pension benefits early due to illness/disability ... as far as I know.
 
just checked it cant be cashed in as he contributed for over 2 years.

back to the drawing board.
not sure the cr union will be able to do anything for us as i already have a car loan with them.

thanks
 
thats what i think i am going to do ,

thanks a million for all you comments really helpful.
 
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