3 Common Questions About Your Pension and Your Employment Status

As a UK citizen that has been paying into their pension throughout their lives, you may be considering what happens if something goes wrong, both in your working life and personal life. If your employment status or financial situation changes, your pension may be the last thing on your mind. This is why we have collated the most common questions about your pension in an easily accessible FAQ that will make sure you know what happens when the worst occurs.

If you have more questions after reading this article, then you should contact the experts for more information. Here at Portafina we know pensions can be confusing, if you have any questions please visit our website.

Is my pension still accessible if I am made bankrupt?

Bankruptcy can be declared to help pay off large debts that are affecting the state of your finances, especially in terms of waiting creditors. However, before you declare bankruptcy, you should ensure that you know what happens to your pension under these circumstances. If you were made bankrupt before May 29th, 2000, bankruptcy could have a significant effect on your financial future as your Trustee will be given the money by the government to pay off your debts to creditors. However, there will be less effect on your personal finances in the future if you were made bankrupt after May 29th, 2000, as your pension is protected from claims by your Trustee. This Trustee can withdraw money if excessive payments were made before the bankruptcy, however, and you can claim your pension for a limited time in an out-of-court agreement with the Trustee.

Do I have a workplace pension if I am made redundant?

Many people believe the myth that if you are made redundant, you lose your workplace pension. However, this is simply not the case, and yo

As a UK citizen that has been paying into their pension throughout their lives, you may be considering what happens if something goes wrong, both in your working life and personal life. If your employment status or financial situation changes, your pension may be the last thing on your mind. This is why we have collated the most common questions about your pension in an easily accessible FAQ that will make sure you know what happens when the worst occurs.

If you have more questions after reading this article, then you should contact the experts for more information. Here at Portafina we know pensions can be confusing, if you have any questions please visit our website.

Is my pension still accessible if I am made bankrupt?

Bankruptcy can be declared to help pay off large debts that are affecting the state of your finances, especially in terms of waiting creditors. However, before you declare bankruptcy, you should ensure that you know what happens to your pension under these circumstances. If you were made bankrupt before May 29th, 2000, bankruptcy could have a significant effect on your financial future as your Trustee will be given the money by the government to pay off your debts to creditors. However, there will be less effect on your personal finances in the future if you were made bankrupt after May 29th, 2000, as your pension is protected from claims by your Trustee. This Trustee can withdraw money if excessive payments were made before the bankruptcy, however, and you can claim your pension for a limited time in an out-of-court agreement with the Trustee.

Do I have a workplace pension if I am made redundant?

Many people believe the myth that if you are made redundant, you lose your workplace pension. However, this is simply not the case, and your workplace pension is kept for your usage throughout your life until you need it. If you are made redundant, payments into the account stop, and you can either keep the pension the way it is, transfer it to a new private or workplace pension to continue payments or contribute your redundancy fund towards your pot. If you are choosing the latter option, you can either contribute some of your redundancy payment into your retirement fund or ask your employer to do so as an employer contribution. This is called redundancy sacrifice and is a good way of building up your pension before you seek alternative employment.

What happens to my pension if I work part-time?

If you work part-time, your pension is one of the least affected parts of your finances, and you should act towards your pension the same way that you would if you were employed. If you work part-time, you will still be added to the workplace pension scheme and can contribute towards this at will. However, the only change is that the amount that you are paying into this fund may be reduced, in which case you should consider making voluntary contributions.

If you are still worried about any aspect of your pension fund, you should seek out more information on Portafina’s LinkedIn, Twitter, Facebook or Youtube account.

ur workplace pension is kept for your usage throughout your life until you need it. If you are made redundant, payments into the account stop, and you can either keep the pension the way it is, transfer it to a new private or workplace pension to continue payments or contribute your redundancy fund towards your pot. If you are choosing the latter option, you can either contribute some of your redundancy payment into your retirement fund or ask your employer to do so as an employer contribution. This is called redundancy sacrifice and is a good way of building up your pension before you seek alternative employment.

What happens to my pension if I work part-time?

If you work part-time, your pension is one of the least affected parts of your finances, and you should act towards your pension the same way that you would if you were employed. If you work part-time, you will still be added to the workplace pension scheme and can contribute towards this at will. However, the only change is that the amount that you are paying into this fund may be reduced, in which case you should consider making voluntary contributions.

If you are still worried about any aspect of your pension fund, you should seek out more information on Portafina’s LinkedIn, Twitter, Facebook or Youtube account.

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