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You Must Take Your Pension Because....?

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ibizaboy | 09:16 Mon 21st Jun 2021 | Business & Finance
19 Answers
around a month ago i received a letter asking me what i intended to do with my works pension. And that if i was not working i needed to tell them. i duly informed them i was unemployed and received my pension pack, however to my amazement out of the 4 options there wasn,t one to NOT take your pension yet.
After a phone call this morning i have been told that if you are out of work you HAVE to take your pension one way or another. My pension adviser never mentioned this when i saw him in April.? I,ve now looked it up on the goverments website and that doesn,t say you have to take it either. i,m confused. ( ive just turned 60) thanks.
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Most Company pension schemes for a person of your age will have 60 as the retirement age. It could just be a clause in the scheme that means you have to take it. Alternatively it could be a closed scheme and they do not want to hold any deferred pensions.
14:34 Mon 21st Jun 2021
'received my pension pack...:. What does that mean?
Who was the phone call with?
it will depend on what your scheme's normal retirement age is
I think Ibizaboy is 62.
Well as the post says just turned 60 I presumed he's 60! That doesn't say what his schemes retirement age is
Are you talking Spain or the UK.

My age is 66 for my pension....and have just applied - literally this morning.
its a works pension dtc
if it's a works pension it's nothing to do with DWP - except if IB is taking or applying for support from the DWP (Universal Credit).....
Most Company pension schemes for a person of your age will have 60 as the retirement age. It could just be a clause in the scheme that means you have to take it. Alternatively it could be a closed scheme and they do not want to hold any deferred pensions.
I assume you are in the UK.
"If you already get means tested benefits they could be reduced or stopped if you don’t take money out of your pension that you're entitled to take. If you don’t take money out, you will be treated as having 'notional income', which means this money will affect your entitlement to benefits."
https://www.citizensadvice.org.uk/debt-and-money/pensions/nearing-retirement/what-you-can-do-with-your-pension-pot/
That was the only thing I could think of too @barry1010 - a benefits adviser saying that a works pension might affect benefits even if not yet in payment.

OP - if it was your works pension provider who said you must take it, I'd be tempted to say, 'Or what?'. What exactly will they do if you don't take it? Sounds like the pension pack you received is for people who have asked about their options if actually taking their pension.

Question Author
Hi everyone thanks for replies. in more detail. i am 60 and have not requested my pension. i was made redundant last nov, the letter from my ex employer said fill in the form, but they never sent one so i rang them last week and they sent a pension pack as it stands today. there is no option to not take it, it is a works deferred pension and is probably closed as someone else pointed out as neither myself or work pay into it. but i still wasnt aware that i had to actually do something with it before im 66. i intended to leave it until i turn 67.
as long as you are not trying to claim benefits I'd have thought you can wait and take it when you want.
So who told you in the phone call that if you are out of work you have to take your pension?
Hang on this may relate to a previously declared pension age on your firms scheme. Do you know what that is?
By delaying taking your State pension, it is increased (by a small amount) in recompense.
Your company pension is unlikely to have such a provision; delaying taking the company pension past your normal retirement age (as defined by the scheme) is unlikely to lead to an increased pay out.

My deferred company pension had a normal retirement age of 60; sometime after I left the company the scheme decided (unilaterally) that my normal retirement age would be 65.

I would take the money before they change their minds; in the event that the pension scheme is declared insolvent – the first priority of the scheme is to ensure that those receiving a pension are protected, those waiting for a deferred pension may loose out.
Normally you inform the company what year you wish to take out your pension, and that is it. The date may have defaulted to now. See if the company will change your date to some future year you want.


Barry1010. A pension pack is a brochure of information, advice, and forms your pension company sends you six months before your retirement date to help you with the financial retirement options.
Question Author
UPDATE TO SAY THANKYOU to all the people whom answered my question. Today i received a letter stating that the age of 65 was missing from the original letter and that,s why it looked as if i had to take it now. only if you are still working at 65 do they need to see a payslip. so for now its deferred for another 6 years.
I am claiming job seekers allowance but i am legally entitled to.

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