Section 32 buy-out with GMP

2

Comments

  • dunstonh
    dunstonh Posts: 116,316 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I've heard that fron April 2011, assuming one has £20.000 in other pension income, it will be possible to draw out the whole of the £70,000 in cash.
    Can anyone confirm whether this is true?

    No its not true.
    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.
  • enrobso
    enrobso Posts: 2 Newbie
    Thanks for the quick reply. What I meant to ask was, if my other pension income is more than £20.000 per annum, will I be able to withdraw my section 32 fund of £70,00 in cash rather than have to take an annuity?
    I believe this will be the case for other annuity based products.
    Hope you can help me on this one.
  • dunstonh
    dunstonh Posts: 116,316 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 4 January 2011 at 3:53PM
    What I meant to ask was, if my other pension income is more than £20.000 per annum, will I be able to withdraw my section 32 fund of £70,00 in cash rather than have to take an annuity?

    No you cant draw it all in cash. The new rules for those over 75 and amended rules for those under 75 do not allow for 100% cash lump sum. The £20k secured income just allows for a greater amount of income to be withdrawn on the unsecured income option compared to those who have less than £20k a year secured income.

    Also, with GMPs it is not unusual to also find a guaranteed annuity rate. So, check that before you decide to do any transfer. Also, the transfer value may be significantly lower than than the GMP. Again, check that.
    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.
  • casey_junior
    casey_junior Posts: 178 Forumite
    MikeJones wrote: »
    Hi Gissajob,

    Within a Section 32 Buyout the primary requirement is to provide the Revalued Guaranteed Minimum Pension at State Pension Age.

    Sorry, but I've just seen this post, and I dont really want to go on flogging a dead horse! :o

    Does this mean that every sec 32 has to have a GMP, as I have said in my previous posts that mine contains no guarantees of any sort except the sum assured?
  • nrsql
    nrsql Posts: 1,919 Forumite
    First Anniversary First Post Combo Breaker
    I'm sure you're going to be asked when you took it out and who it's with.
  • casey_junior
    casey_junior Posts: 178 Forumite
    nrsql wrote: »
    I'm sure you're going to be asked when you took it out and who it's with.

    Surely these aren't relevant as MJ states" Within a Section 32 Buyout the primary requirement is to provide the Revalued Guaranteed Minimum Pension at State Pension Age."?
    No mention of provider or timescale.
  • casey_junior
    casey_junior Posts: 178 Forumite
    casey_junior wrote: »
    Surely these aren't relevant as MJ states" Within a Section 32 Buyout the primary requirement is to provide the Revalued Guaranteed Minimum Pension at State Pension Age."?
    No mention of provider or timescale.


    Can I ask again, "Is Mike Jones correct in saying that in all Section 32 Buyouts the primary requirement is to provide the Revalued Guaranteed Minimum Pension at State Pension Age"?
  • Swan_2
    Swan_2 Posts: 7,060 Forumite
    please click the Spam button on wowgold's posts folks
  • amersall
    amersall Posts: 17,005 Forumite
    First Post Combo Breaker First Anniversary
    Swan wrote: »
    please click the Spam button on wowgold's posts folks
    Have done, and all those on other threads.
  • casey_junior
    casey_junior Posts: 178 Forumite
    casey_junior wrote: »
    Can I ask again, "Is Mike Jones correct in saying that in all Section 32 Buyouts the primary requirement is to provide the Revalued Guaranteed Minimum Pension at State Pension Age"?

    Can I ask again?
This discussion has been closed.
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