Your pension questions answered
There's no denying that pensions can be a tricky topic to get your head around, and our recent post on pensions sparked a lot of questions.
These questions ranged from how to save for your pension, to the rules around taking money from your pension pots.
If you're confused, don't worry. We asked some of our clued-up colleagues here at the Money Advice Service and at the Pensions Advisory Service for help in answering some of them. Take a look and see if they answer yours.
Five pension questions answered for you
Sandra: I'm wondering will I be able to take some money from my work pension that I'm already receiving?
If you are already getting a pension from your workplace scheme you can't normally take a further lump sum. However, it's always worth checking your options. Contact your pension provider or ex-employer – whoever is paying your pension each month.
Nick: I have worked for different companies over the years. How can I track down pensions I might have? Also, is it possible to transfer my state pension to a private one?
It's estimated that there could be as many as 50 million lost pension pots by 2050 so searching to see if one is yours should be a top priority. You can trace past pensions that you might have lost track of through the government's Pensions Tracing Service. Our blog post on lost pensions can help.
It's not possible to transfer your state pension to a personal pension.
Eric: I was in the military back in 1976 to 1982. Is my military pension safe? Since than I have been in and out of work, with long periods of unemployment. Are my contributions enough?
Firstly, yes, your military pension is safe. The best port of call to find out how much you will be entitled to will be to contact your pension provider.
It's a good idea to get a clear idea of how much retirement income you might have from all sources so if you have any other private pensions contact the relevant pension provider(s).
Also to see how much you will be entitled to from a State Pension contact the Department for Work & Pensions website, or give them a call on 0345 600 4274.
Have a think about how much you might need as retirement income and then compare this to what you might have when you get all your estimates in. Only then can you work out if you have any shortfall.
If you need help you can contact the Pensions Advisory Service, which has a free pensions helpline.
Nine things it pays to know about pensions
John: You need a good disposable income to save for a pension. How is this possible on or near the minimum wage?
It can be difficult to put money aside for your retirement when you are trying to make ends meet day to day and no-one would suggest that you should use money needed for the essentials such as rent or mortgage payments or food and bills to save into a pension.
Soon all employers will have to offer a pension scheme by law, and enrol eligible employees into it. This is called automatic enrolment. You and your employer pay in and you also receive tax relief from the government to boost the payment further. Payments are taken directly from your pay.
You can use our workplace pension calculator to find out how much you would pay in if you are eligible for automatic enrolment. You can also talk your options through with the Pensions Advisory Service.
You may also be aware it is becoming compulsory for employers to provide a workplace pension and this is being phased in, starting with the largest UK employers.
If you are at least 22 years old, but under State Pension age, work in the UK and earn more than £10,000 a year (tax year 2015-16) you will be eligible.
Want to learn more about workplace pensions? Read our guide
Pauline: I have six pension pots. Can I take 25% tax free from each pot then leave the rest until I need it? I am 57 and would love to pay off my mortgage with this money. The pots together are working worth about £225,000.00.
In theory yes, but before you do anything we would suggest you book an appointment with the free government guidance service, Pension Wise.
They can go through your options with you and give you some guidance. Afterwards you'll get a letter with a summary of what you talked about.
We also have a guide on your retirement income options you may find useful.
This article is provided by the Money Advice Service.
More on AOL Money:
Pension scams and mis-selling risk from government failings
Could pension freedoms hit you with a tax bill?
Workers 'putting cash in piggy-banks' for retirement pot
