Pension

[JoeB]

I am in a superannuation pension scheme - could they ask me to freeze the payemnts during the iva?

[MelanieGiles]

Yes - this is always a possibility depending upon your age and the quality of the offer you are making to your creditors. I would personally not offer up your pension contributions firstly, but beware that the creditors may seek to modify and bring them in at the creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Thanks for this - its what I thought - my net contribuitions would be about 150 - 9k over 5 years - would I be able to offer this later in the IVA (my Dad would put up the money if necessary but would not have it up front) this way I woould not lose the years.[?]

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
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[alan1951]

I have never seen pension contributions mentioned before on this site. Does this mean that I might have to stop making the pension contributions to my work scheme??

This would really mess up what I get when I retire.

Alan

[MelanieGiles]

Alan

Creditors occasionally ask for pension contributions to be suspended for the duration of the IVA. This is more likely to occur if you are younger, but their reasoning is that once the IVA is concluded you will be an avid saver and then can replace the missed pension payments from your disposable income which no longer belongs to them. It's a difficult one to argue unfairness sometimes.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[alan1951]

I am 55 years old and would plan to retire as soon as the IVA was finished.

As I have no assets at all ( but a LOT of debt circa 75k ) would the rules be different for bankrupcy?? I would prefer to pay back as much as I can to my creditors, probably around 50p/£

Alan

[Skippy]

I was allowed to carry on making payments into my pension during my IVA (I'm 32), and I have also been allowed to keep paying now I am bankrupt. When I declared my net income on my BR forms I used the figure after all deductions, including my pension had been taken out. I sent my payslips to the OR and I was surprised that they didn't ask me to stop the payments. I think it really depends on your creditors and your IP or OR.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Alan

I woulf have thought that your IP will fight for your pension contributions to be continued during the IVA, given your circumstances.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Sensible77]

I pay £150 per month into a local government pension. Payplan have said that it is unlikely that my creditors will request this to be stopped. I assume this is because it has no cash in value until I retire. However, if they do request that my contributions cease to raise their dividend, I will be OK with that.

[louiseh]

What happens to final salary pension schemes? In my husbands case he had the option to join, which he did 5 years ago, if he stops contributions he will be unable to rejoin. (age 43)

[MelanieGiles]

Louise

This will need to be explained within his IVA proposal, if this is the debt recovery route you have chosen. I am sure that with a carefully worded justification for remaining in the scheme, creditors will be happy to accept.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Pensions are somewhat of a lottery with regards to IVAs. It seems that it is slightly a case of the luck of the draw as to whether someone is asked to suspend their pension scheme in an IVA. In my experience the majority of people are not asked to suspend pensions which are deducted direct from their pay although as Mel rightly says the creditors have asked some people to do this in the past. Age does seem to play a part and people nearing retirement age will almost always be allowed to continue their pension arrangements. People who have separate "private" pension schemes will run a higher risk of having to suspend these as it is more unlikely that creditors will allow a "private" pension allocation in the budget over and above a work pension.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
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[Lula]

sorry while we are on the matter of pensions.. i dont have one i am in an iva, and now i have a better understnading of money gernerally as my lack of got me in debt.. would i be able to start one..i imagine this is a question for my ip just wondered on the general idea..i am 27 if thats makes a diff

[MelanieGiles]

Hi Lula

I think that it is unlikely that your IP would support you spending money on a pension at the age of 27. Save this for when the IVA is completed and you have more disposable income available.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

I think the pensions issues in IVA's need to be straightened out. We are continually being told that we need to save more and more for out retirement (thanks Mr Brown!) and yet people are being told to stop paying into pensions during the 5 years of their IVA. I appreciate that the idea of an IVA is to pay as much back to your creditors as possible, but surely a pension is something that is necessary. Don't get me wrong, I don't mean making additional contributions, but surely people should be allowed to make some contributions to improve their income in their old age?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/