www.iva.co.uk

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!.

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.

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.

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.

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