unlocking pensions

[burnley1955]

any advice on unlocking pensions?

[factor-fiction]

what age are you? From your user ID are you inearly 50s? If you are over 50 you can draw your pension now and take 25% of its value as a tax free lump sum. You aren't considering selling it to some dodgy company are you?

[dasherman]

Consider your long term wealth before you even think of unlocking your pension/s.

It might seem like a good idea to get a windfall to pay off the mortgage or other debts or even to pay for a holiday or a new car. But it will also reduce your income in the future,and when you consider that you could be in retirement for 20 years or more,that's a long time to be struggling for money.

You might find this useful:-
http://www.fsa.gov.uk/Pages/Library/Communicat ion/PR/2003/014.shtml

[burnley1955]

thanks for replies-- you are right about age --54 the pension is from a firm I worked at 20 years ago and is worth about �400 a month--I am currently in an excellent final salary scheme which is more than adequate for my needs- whats this about dodgy companies???

[factor-fiction]

My reference to dodgy companies was to some of the firms that encourage you to unlock your pension by switching it to a product with them- transferring the accumulated pension fund out of an occupational pension scheme, or a pre-1988 self-employed retirement annuity, into a personal pension. They usually charge a pretty big fee and the returns are much lower than you would get from staying in the ocupational scheme.
This is a good article showing the options
http://www.moneyextra.com/guides/pension-unloc king-033147.php

[abay]

You can get more details about the pension plans in this site.
http://insurance-plan-guide.blogspot.com

[oldgit51]

It would seem that the general consensus is NO it's not a good idea. You'll end up with a massive shortfall in your retirement income. Last resort....
http://legal-aide.net...ly-a-sensible-option/