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Cashing in Pension
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SSTEPHANIE
Posts: 149 Forumite
I have overdraft and debts to clear and realised I can cash in a small pension I once started and then finished. It is Protected rights fund. I can take a lump sum (which is changing daily) and then small pension for rest of my life (my life goal is to reach at least a healthy 101 ), or I can leave it until I am 60. I do not have long to make up my mind as very soon this offer closes. Anyone out there hot on this item ? Would very much appreciate some help:A
10.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:
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I do not have long to make up my mind as very soon this offer closes.
The only ones on a time restriction are those aged 50-54 who have to do it before April 2010 when the minimum age increases to 55. If you are under 50 you cant do it and if you are 55 and over you have no time restriction.Would very much appreciate some help
what are your questions?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.0 -
I am 51, and it does say the fund may be used to purchase a pension onthe open marked. Its only small, protected rights fund of about £2,00010.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:0
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sorry, i am still finding my way around and keep getting lost in the forums and unable to reply. My questions are, will the reduced pension amount be counted as taxable income when it does come to be claiming my state pension? Would I be better off repensioning before I claim the tax free lump sum ?10.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:0
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SSTEPHANIE wrote: »My questions are, will the reduced pension amount be counted as taxable income when it does come to be claiming my state pension?
Yes all pension income is taxable.Would I be better off repensioning before I claim the tax free lump sum ?
What would you be hoping to achieve by repensioning?0 -
Maybe a higher yearly income from the remaining pot of money ?10.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:0
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SSTEPHANIE wrote: »Maybe a higher yearly income from the remaining pot of money ?
That could only happen if you intended leaving the funds invested. You seem to want to take an annuity.0 -
I can only take 25% of the protected fund, the remaining 75% they want to keep hold of and pay me via pension. (Id rather take the whole £2,000). If I leave it alone then my pension still isnt very high. By taking the 25% now i can cut some of my debt.10.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:0
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£500 is not going to change your life!0
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SSTEPHANIE wrote: »I can only take 25% of the protected fund, the remaining 75% they want to keep hold of and pay me via pension. (Id rather take the whole £2,000). If I leave it alone then my pension still isnt very high. By taking the 25% now i can cut some of my debt.
Repensioning will only have any effect if you plan to leave the pension invested which you don't plan to do.
If you are determined to take it now then you get an IFA to search the open market for the best annuity. Bear in mind that due to your age annuity rates will be low.
As Lizzie says a £500 lump sum won't go very far in clearing your overdraft and debts so you might want to consider if it's worth it.0 -
£500 would pay off SOME of the part of my debts that I am left with after doing credit card shuffle etc..10.2009 startedclicking 16th 1free remotecontrolled extensionlead; Tesco freesims: DFW appliedfor 19th Saved £302.92 today by friend "mending" laptop I had rescued ; more freesimms : ;1 free eagashower smart (saves water);1 freebusinesscardholder;250nice businesscards;tbags; :cool:17thNovemberperfumesample;fatcheese£16.87; Get£sback £4.44:beer:0
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