Why can't I get my money?

I am in the Civil Service Pension Scheme. For a while I paid additional voluntary cointributions to a Scottish Widows account, I stopped the payments some years ago. I recently asked to withdraw the funds as I needed them, I was informed that I couldn't access the money. Why can't I gain access to these funds? I have no intention of adding to them and I could really do with them at the moment.

The reason is that it is a Pension Fund and the rules of Pension Funds is that the money sits there earning interest until the date set for the fund to mature happens.

Because there is a built-in assurance that you are not going to deprive them of [your] money - that would be stated in the document you signed when you started the AVC, they can give it a higher interest rate (which should be a compound one). This makes it quite a good investment, even if you put no more into it.

With Pension Funds there is also a restriction on withdrawing the actual money. Basically, once the fund matures, they begin to pay a pension based on the current value of the fund. I believe they have tables which tell them when you are most likely to die and the fund is paid out as part interest and part capital at a regular rate until you die. If you die before their tables say you should, they keep the balance (to help fund other pensions), if you survive until a ripe old age (as one hopes you will!), they are out of pocket (but they have funds, of course, from people who died young). It's all a big casino, really, if one is very cynical.

So the short answer is that unfortunately it's that kind of fund and you can't claim back what you've paid in.

When it matures, they are now obliged to give you the option of taking 25% as tax-free cash and the rest taxed at the current rate *calculated on the year in which you claim it* ... which means that you don't see almost 40% of it ever again! The other options are to draw the pension they offer you (and Scottish Widows are pretty good) or to transfer the funds to another pension provider. In other words, you can then shop around for an annuity with that cash but you can't actually have it without being taxed on it.

You speak as though the fund hasn't matured yet. If it has and you are drawing the pension, then it is now an annuity and there really is no option to withdraw the capital. If you feel you were badly advised when the AVCs matured, then you should contact both the Union (UNISON, if you were a member) and an Ombudsman for advice on how to proceed.

If it's a scam, then you lost your money.

all these widows asking for money over the internet are scams

AVC's are frozen until retirement age. I don't think you will be able to get to them until them!

A pension is for retirement and that is it!

You knew that when you agreed to pay into it.

It's not a savings account.

You're not smart.

contact a lawyer to straighten this out.........

wait until retiring age

piss off