# Cancelling a young pension.



## Rick_1138 (Jan 24, 2008)

Hi all,

following on from an abusive prick on Money saving expert, who basically chided me for being an idiot, who should have at least 15k in a pension by now.......and breath

Anyway, i was made redundant 2 months ago, but was luckily able to walk inot a better job straight after.

However my old job had a pension scheme with Norwich Union (Aviva) where i paid in cash, and the company matched it.

However my new place doesn't have a pension scheme, i can start my own personal one etc but i don't know how it works.

Aviva were supposed to contact me after i left my job but the haven't.

The pension was started in about March 07 and would only have about 2k in it.

I was wondering if its possible to cancel the pension and get some of the cash out to use it to pay off the last of my credit card debt (i have about 3k on a 0% card and it would b nice to get totally debt free sooner rather than later).

I have been told you can't get out of a pension until you are 50, but as it it 2 years old i have read that i may still have this option.

I was basically saying as i am 27 i am still young and can play about a bit with my pension. The guy on Money expert said 
"27 isnt early. 16-18 is early. 27 is getting past the point of easy affordability. 

A rough rule of thumb is to aim for £35k in a pension by age 35. You are 27 and have £2k."

if i knew i had to start a pension when i was 17 i would have laughed, i was lyucky if i made £200 a week and certinaly couldn't afford to put some in a pension, as i was going through uni, left without needing any loans though.

So i came here looking for advice, thats useful instead of derogitory.

cheers all.


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## Geetarman (Apr 22, 2007)

It is true that the earlier the better for these and it was stated in some of the recent analysis that 27 was about the agae where you need to have things sorted by if you didn't want to be paying loads each month.

However not everyone can do that, or has the info to know about this!

As for your existing pension, chances are you won't be able to get the cash back, the fund will still remain and you can transfer that into another pension with the same or a different provider, or possibly start paying into it again, give them a call and see what they say. Depending on the type you may be able to get cash back.

There are loads of option so may be best to get in touch with a financial advisor, many will work for commission so you won't have to pay anything. Looks for and independent financial adviser (IFA) as they will be able to give advice on all companies products. Site below to find local ones.

http://www.unbiased.co.uk/

The Government are looking at a new national pension scheme for 2012 which will get folk saving early, should make things a bit easier in the future.

Best thing to do is get advice and save what you can afford, you can usually pay lump sums as well (single premiums) to increase your fund.

Best of luck!


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## corsaauto (Jun 2, 2009)

I think that would be your best bet, inform Aviva of your circumstances, and see whether you can restart your pension, or start another one and freeze the old one untill you are of pensionable age. But by freezing it they will keep on making charges against it, thats what Scottish Widows did to mine!! Until I transfered it.
TC


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## Stumper (Apr 5, 2009)

That's the problem with Moneysavingexpert, there's some exceptionally pompous pricks on the site who prefer to belittle people rather than help them!

With regards your pension, I was told by a pension advisor that a pension up to 2 years old can be cashed in. If this happens, you will receive back all of your contributions less the tax and your employer will receive back all of their contributions. You will not receive the employers contributions!

Once the pension is over 2 years old, the pension is frozen and can be either transferred into another scheme if they will accept it or it's frozen until your retirement date!


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## Rick_1138 (Jan 24, 2008)

The guy got back to me, and was still a bit over the top, basically he is a financial advisor, and he came across as a bit know it all, but that is the bad thing about the net, things can be written and read badly giving off the wrong impression.

At the end of the day i think my pension is about 3.5-4k at the moment (will phone Avivia toniught and see whats what)

Anyway i am in the lucky position of having few debts and no mortgage so i can put away a good chunk into a pension a month, say £300, which would get me well on my way to 35K by 35yo.

I was simply curious and the guy came across badly basically saying my GF's dad CANNOT give advice, what he meant was he can't give Financial advice, i meant he was giving me pointers and help. But as he is in the trade he saw what i was saying as wrong, as it is a recognised term "advice" means summat very different to a lawyer etc, than between me and a friend.


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## Geetarman (Apr 22, 2007)

You can only get your cash back on certain types of pensions so it'll depend what you have.

To be honest your best bet is to get independent Financial advice as you may be able to continue paying into the Aviva one but it may not be the best thing for you, plus there may be other things you can do along with a pension (ISA, Shares etc etc) that they would be able to advise you on.

I work in the pensions industry and it's a hell of a confusing thing if you don't know the ins and outs if it all and there are plenty of folk in the same situation but at least you're aware of it.

Oh and worth pointing out that the "value" of your pension may not be what you get back if you do get money back, would imagine there will be all sort of charges on coming out.


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## organgrinder (Jan 20, 2008)

One of the most telling things I was told about pensions was that if you invest £100/mth at 30 you would get the same pension as someone who waited until 40 and then had to pay £200/mth.

I know there are plenty of reasons why the above might not be strictly accurate and why it might not turn out to be the case but the basic principle is correct.

I was probably lucky enough to have about £35k in my pension at 35 but the financial markets have done everything in their powers to upset any real growth since then. I am hoping for some steady growth for the next 15 to 20 years to get me back on track but that I fear is pie in the sky.


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## rusey93 (Dec 24, 2008)

i'd go see a financial adviser :thumb:

My step-dad is a chartered one, but any local one will do


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## Richf (Apr 26, 2008)

I've been putting £300 into my pension for some years now in the last 12 months the total hasnt gone up at all in other words its been dropping in value by more than i put in each month 

I wouldve been better with a normal bank account and regular saving


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## corsaauto (Jun 2, 2009)

My FA told me that there is a government move to make all FA's look into the clients pension plans because there are alot of companies NOT producing enough profits.......take advice from an IFA.


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## CupraRcleanR (Sep 2, 2007)

Richf said:


> I've been putting £300 into my pension for some years now in the last 12 months the total hasnt gone up at all in other words its been dropping in value by more than i put in each month
> 
> I wouldve been better with a normal bank account and regular saving


you could look at it that you are buying units at a cheap price at the moment so when the the market does recover you will see good growth then. Gotta think long term with a pension


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