Selling Pension

Hi,
I have now heard that we can sell private pensions that are sitting doing nothing. Is this true? Does anyone know how I would go about selling my pension.

Thanks
«13

Comments

  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Nope, not allowed AFAIK.
    Trying to keep it simple...;)
  • ReportInvestor
    ReportInvestor Posts: 3,646 Forumite
    Unless SpiderMam mean transfer to a lower cost / better performing fund?
  • Titan
    Titan Posts: 36 Forumite
    SpiderMam wrote:
    Hi,
    I have now heard that we can sell private pensions that are sitting doing nothing. Is this true? Does anyone know how I would go about selling my pension.

    Thanks

    You can't sell a pension, however you can transfer it virtually anywhere within the pension enviroment.
  • Pal
    Pal Posts: 2,076 Forumite
    But under no circumstances can you transfer it to another person in return for cash. i.e. you can't sell it.
  • Maybe the OP is thinking about April 2006 change to let you commute a trivial pension fund (less than £15k I think) to a lump sum if you're aged 60 to 75?
  • How strange, how the parameters can change. You can now unlock capitol from your pension of say 25% as long as you are over 50. In my case, i started my pension in 1991 and was 25 years old, and the basis of my pension was that i could start getting my pensionable benefits at the age of 45, as that was the predicted year i want to retire. Now i have found that i can not only NOT take the pension early at the stated start age of 45, but it is not classified under the mis-sold pension plans that were investigated from this particular year.
  • dunstonh
    dunstonh Posts: 116,051
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    You can now unlock capitol from your pension of say 25% as long as you are over 50.

    The FSA has a very dim view of those that used to promote pension unlocking. Most got fined and are no longer in business.

    That said, you wre always able to access 25% of your pension from age 50. Nothing changed on that front.
    i started my pension in 1991 and was 25 years old, and the basis of my pension was that i could start getting my pensionable benefits at the age of 45, as that was the predicted year i want to retire.

    Were you in (or are in) a special occupation that allowed earlier retirement?

    Now i have found that i can not only NOT take the pension early at the stated start age of 45, but it is not classified under the mis-sold pension plans that were investigated from this particular year.

    It wouldnt be classed as a mis-sale as advice is given based on HMRC rules that are in place at the time. You cannot be held accountable for changes in the future that were not known about.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money
  • dunstonh
    dunstonh Posts: 116,051
    Name Dropper First Anniversary Combo Breaker First Post
    Forumite
    Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money

    If they are indeed promoting that then they are heading for trouble with the FSA. The FSA recently fined a firm over £1 million for doing that sort of thing without justification. You are not unlocking your pension. You are commencing your retirement benefits much earlier and whilst you can get 25%, you will be reducing your retirement income, reducing death benefits to your spouse/dependents and almost certainly using a more expensive pension plan to do it.

    The FSA treat what you suggest as a high risk transaction.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money


    Anybody can take benefits from a private pension, including 25% tax free cash at the age of 50, this has been legal for years.What has changed recently is that you now are not required to take an annuity income with the other 75% - you can leave it invested to grow for later.

    This involves moving the pension into "income drawdown" (which has also been available for years, but formerly you were required to take a minimum income when in drawdown.)

    Note that the minimum age for doing this will rise to 55 next year.It is a very useful option for many people, especially those who find themselves redundant and unemployable in the 50s but unable to draw state pensions until 65,and facing harsh penalties if they take company pensions early.
    Trying to keep it simple...;)
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards