Cashing in a pension

D

Digger

Guest
A friend of mine worked for a multinational and has about 6K saved in his pension scheme which is a defined contribution scheme. He has worked for over 2 years in this company and so cannot cash in his pension.
he desperately needs to cash it in as he needs the money to fund a course .
Can he purchase a buy out bond ? if so how does it work and how much would it cost? and how would he go about getting one?
Appreciate any replies.
 
Hi Digger

He cannot access the cash until he retires. A buy out bond just transfers the funds from his old employer's fund into a new fund in his name,but the new fund is managed by a life insurance company.

Brendan
 
Cashing a pension

Brendan,
Would it be possible to transfer his old pension i.e the 6K into a new pension scheme with a new employer and then cash the lot in a years time on leaving this new employer?
 
Re: Cashing a pension

Would it be possible to transfer his old pension i.e the 6K into a new pension scheme with a new employer
Probably yes - depending on whether the trustees of the fund of his new employer accept transfers.
then cash the lot in a years time on leaving this new employer
No - pension money is for when you retire.
 
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