Locked pensions and funeral plans.

[ozjohn]

Locked pensions and funeral plans. Two issues that are unrelated but have both crossed my mind as I have recently turned 50 and I thought I would combine both queries in one post. I am three years into an IVA.

Firstly, I paid into an occupational pension for many years at a previous employer and it is frozen. I don't think I can yet claim it, but if I could, would my IP expect me to do so, to increase my monthly income and thus monthly contribution?.

Secondly, I have seen all the ads about funeral plans and death benefits, targeted at the over 50s (eg. "pay four pounds a month" etc). If I signed up for such a plan would there be any implications for my IVA?. Specifically if the company I was paying into was linked in some way to one of my creditors?

Sorry for the long post!.

[kallis3]

Hi,

If your pension is frozen then you should not be expected to release it until it is due.

It is up to you whether or not you look at prepaid funerals - if you can fund this through savings from your monthly allowances then you should be ok.

[luluj]

So long as any payments to a funeral payment are made from your allowed allowances whilst in an IVA you will not be questioned and will be able to do this.

Re your pension.... I would imagine if you able to claim your pension then you might be required to realise this so that your creditors receive maximum return.

[kallis3]

I imagine it will depend upon when it is available to take.

I was advised by an IP that although I can pick my pension up before the IVA finishes, I should wait until afterwards before releasing it.

[Shining]

Anything you choose to do outside of your allowances so long as you can manage and not stretch yourself too far.