How much tax on my pension

D

Domper1

Guest
I'm leaving my job soon and I intend to withdraw from the company pension having joined in 1995 and there is now worth around 10k between mine and the companies contibutions, so how much tax am I going to pay on that when I ask to opt out on my departure and how soon will I see that money, thanks.
 
no cash

You may not be able to get CASH. The whole point of a pension is to pay you an income when you retire.

So no money until aged 60 or 65, in general.

Unless you were less than 2 years in the pension plan.
 
Re: no cash

Would a "current transfer out entitlement" not mean what it says.
 
Re: no cash

Transfer out does not mean 'cash in' - It probably means a transfer to another pension fund.
 
Re: no cash

Can you explain this, although I'm pretty sure thats its self explanatory even for me, it does appear that I'm going to have to wait for another few years before I see the money.

"OPTION TO TAKE REFUND OF CONTRIBUTIONS
If you have not completed 5 years qualifing service you have the option of taking a refund of any contributions made by you to the plan instead of a preserved benefit. This option applies if you are leaving service for any reason other than death. If you have completed 5 years qualifying service you may only opt to take a refund of any contributions made by you prior to the 1st January 1991. As the plan commenced on 1st April 1995 this will only apply you if you had benefits transferred into the plan(I Didn't) on becoming a member which included pre 1 January contributions made by you. A refund of contributions would be subject tax, at present 25%
 
Re: no cash

Following recent Finance Act changes, the facility to take a refund of YOUR CONTRIBUTIONS is now only available where you are leaving service with less than 2 years service.
Since you have 10 years service your only options are:
1. Leave the funds where they are and let them accumulate till you come to retirement, when they will be added to any other pensions funds you have at that stage.
2. Take a Transfer Value to a new pension plan (if you are joining a new plan in any new employment)
3. Take a Transfer Value into a Retirement Bond (Buy Out Bond), a pension policy in your name, but again you can only access this fund when you retire.

Having completed 10 years service, the value of your fund on leaving (whichever option above you take) will include both your and your Employer's contributions.
 
You must log in or register to reply here.
Back
Top