Tranferring Old Pension
Comments
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The quote says
£62.40 a year
Value of GMP £3260.000 -
The quote says
£62.40 a year
What is this?
Can you clarify what type of pension this is and what kind of pension your other two are? (See posts above).
Have you obtained a new state pension statement?0 -
Following on from my last question, it must be the GMP statement - presumably to date of leaving.
Even if that is the case, and this is not from a new statement, as they are post 88 benefits, your GMP today is unlikely to be exceed £30,000. In which case, you would not be obliged to take advice, though you may wish to.
In other words, you need to check whether the GMP exceeds £30,000 - if it does, you need to be advised; if it doesn't, you don't. Based on what you are being offered for an advice fee - I'm betting the latter.0 -
Following on from my last question, it must be the GMP statement - presumably to date of leaving.
Even if that is the case, and this is not from a new statement, as they are post 88 benefits, your GMP today is unlikely to be exceed £30,000. In which case, you would not be obliged to take advice, though you may wish to.
In other words, you need to check whether the GMP exceeds £30,000 - if it does, you need to be advised; if it doesn't, you don't. Based on what you are being offered for an advice fee - I'm betting the latter.
The GMP doesn't exceed £30k but the transfer value is £126.5k
I'm even more confused now than I was which I guess tells me that I do need some advice! Just need to find the £950.00 from somewhere. But I will wait until I get the transfer statements from the other 2 pensions as well and do it all in one hit.0 -
It is not the value itself that matters. It is the value of the benefit that does. i.e. if it costs more than £30k to provide the safeguarded benefit then that is what triggers it.Just need to find the £950.00 from somewhere.
It can be paid out of the pension. Indeed, that is the most tax efficient way.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 -
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does that make a difference?
Not to the advice requirement but your forecast would have given an indication of any COPE from contracting out and whether it was possible to increase your state pension.0 -
It can be paid out of the pension. Indeed, that is the most tax efficient way.
can you expand on this? How can it be paid from the pension? I have now found a local IFA who is doing a free first consultation and he has also hinted that costs of any further advice/meeting might be able to be paid from the pension.
Thanks0 -
Pretty straightforward.
For example, when I got an IFA to review my pension fund and suggested new cheaper pension provider for it, his fee for it was taken from the pension fund once it was transferred to new provider.0 -
ChrisSargent wrote: »can you expand on this? How can it be paid from the pension? I have now found a local IFA who is doing a free first consultation and he has also hinted that costs of any further advice/meeting might be able to be paid from the pension.
Thanks
If you write a cheque for £1000 to the adviser then it has cost you £1000.
However, if taken from the pension and you are a basic rate taxpayer then the money in the pension has had tax relief. i.e. £1000 contributed to the pension has cost £800 if basic rate taxpayer or £600 if higher rate. So, either pay it from the pension or add the £1000 (gross) to to the pension first to get tax relief on the advice charge.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
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