Hi Folks,
Hoping you can help as I am almost completely in the dark when it comes to pensions.
I've been paying into a DB scheme from my salary for the last 6 years. The company I work for enforces this from the age of 25 and deducts it automatically so I had no choice to start paying into it, but saw nothing wrong at the time so let it proceed.
Now there is talk of the DB scheme being wound up very soon and our 'cut' or whatever is left of our contributions will be put into a new DC scheme.
Seperately I currently have some significant credit card debt which I'm finding very difficult to get rid of. A lump sum could greatly aid in getting rid of this debt and allowing me some freedom to start savings, be that for a mortgage or similar.
My questions are as follows:
1. Is it possible to 'cash in' what I have contributed to this pension so far, close it off and use this cash as I wish? (to pay off credit card debt basically)
2. Should I even do this? Talk is that there could possibly be only 10% of contributions even left in the scheme to go to the DC scheme for each of us. Once I'm back together I could start a new private pension fund in a couple of years.
Apologies if these seem like basic questions, as I say I'm pretty in the dark about it all.
Thanks,
S.
Hoping you can help as I am almost completely in the dark when it comes to pensions.
I've been paying into a DB scheme from my salary for the last 6 years. The company I work for enforces this from the age of 25 and deducts it automatically so I had no choice to start paying into it, but saw nothing wrong at the time so let it proceed.
Now there is talk of the DB scheme being wound up very soon and our 'cut' or whatever is left of our contributions will be put into a new DC scheme.
Seperately I currently have some significant credit card debt which I'm finding very difficult to get rid of. A lump sum could greatly aid in getting rid of this debt and allowing me some freedom to start savings, be that for a mortgage or similar.
My questions are as follows:
1. Is it possible to 'cash in' what I have contributed to this pension so far, close it off and use this cash as I wish? (to pay off credit card debt basically)
2. Should I even do this? Talk is that there could possibly be only 10% of contributions even left in the scheme to go to the DC scheme for each of us. Once I'm back together I could start a new private pension fund in a couple of years.
Apologies if these seem like basic questions, as I say I'm pretty in the dark about it all.
Thanks,
S.