the richest man in atherstone

Following the nightmare I had organising my paperwork, I decided to follow-up a pension that i contributed to between the years 1998 to 2002. Admittedly I wasn't earning a lot at that time and didn't really understand what pensions were for when I signed up for it. I was young and my parents advised me to do it, so I did. When I changed jobs in 2002, I elected to opt out of a pension because I wanted more money for myself.

Happening across some paperwork for the pension, I wondered if I could cash it in and put the money towards some other type of investment. I would prefer to be rich long before I reach retirement age and recent news about the poor returns of company pensions have put me off them a bit as an investment vehicle.

My benefit statement for 2005 states that I would get a lump sum of £3'400 and a yearly pension of £1100 plus £500 per annum for my wife.

I wrote a letter to the pension provider stating my intentions, however the reply was negative. Apparantly I cannot liquidate the pension and have only two options:

• Wait until I am 60 and use the pension for its original purpose
• Defer the the benefits to another pension scheme

Never mind. It was worth a try. I have learnt a valuable lesson by doing this: I should not invest money in something I do not understand.

I also feel I've learned a lot more about pension schemes. I didn't really understand them before but now I have a basic knowledge of their advantages and disadvantages. The most important advantage is that you can contribute to your pension straight from your paycheck, before the taxman has chance to get his grubby hands on it. The main disadvantage is that you can't get your hands on the cash until you reach retirement age.

I don't regret investing in a pension. If I hadn't put cash in there it would have only been spent on booze, fags and gadgets anyway! I'm older now and I like to think a little wiser and I know that when it comes to investing money again, I won't go about it willy-nilly. I'll find the best products available and understand them inside-out before I hand over the dough.