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    • gramochroi
    • By gramochroi 7th Jul 17, 5:12 PM
    • 106Posts
    • 84Thanks
    gramochroi
    £320k pension pot and not a clue
    • #1
    • 7th Jul 17, 5:12 PM
    £320k pension pot and not a clue 7th Jul 17 at 5:12 PM
    Between a large pension pot from a previous company and a tiny one elsewhere,I have the above amount, from which I want to withdraw 25% at the end of this year when I am 55. The large one is a deferred benefit, so I have to take financial advise before the pension company will transfer it. I have made an appt to see a financial advisor at the end of next week, but would be really grateful if anybody could advise me what I should look out for, avoid, etc., so that I have at least some knowledge before the meeting. This will be my only income.
    Many thanks in advance.
Page 1
    • AnotherJoe
    • By AnotherJoe 7th Jul 17, 5:24 PM
    • 6,904 Posts
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    AnotherJoe
    • #2
    • 7th Jul 17, 5:24 PM
    • #2
    • 7th Jul 17, 5:24 PM
    What is your reason for withdrawing the 25% TFLS?

    What is your reason for wanting to transfer from DB to DC? Is it to retire early ?

    Who do you envisage managing the money ?
    How much do you require from the pot each year ?
    Will you take less out when state pension kicks in ?
    If the £240k drops to £200k or £150k over the next couple of years due to a rough stock market, what would you do ? Draw less down? Get a job? Panic ?
    • gramochroi
    • By gramochroi 7th Jul 17, 6:00 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    • #3
    • 7th Jul 17, 6:00 PM
    • #3
    • 7th Jul 17, 6:00 PM
    Have suffered from depression and anxiety for years, unable to work, drawing benefits. The 25% TFS will allow me to come off benefits, which will be a huge joy. I can live off the £80k for at least two and a half years, but outside of that, really have no idea. I guess wait and see what the FA says.
    • PeacefulWaters
    • By PeacefulWaters 7th Jul 17, 6:08 PM
    • 6,590 Posts
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    PeacefulWaters
    • #4
    • 7th Jul 17, 6:08 PM
    • #4
    • 7th Jul 17, 6:08 PM
    Have suffered from depression and anxiety for years, unable to work, drawing benefits. The 25% TFS will allow me to come off benefits, which will be a huge joy. I can live off the £80k for at least two and a half years, but outside of that, really have no idea. I guess wait and see what the FA says.
    Originally posted by gramochroi
    If £80k tax free will last you two and a half years I assume £240k part-taxed will last you less than seven years.

    This feels like a short term plan with old age disaster at the end of it.

    When are the DB benefits payable from? How much are they? Is there any ill-health enhanced retirement option within the scheme?
    • tacpot12
    • By tacpot12 7th Jul 17, 6:12 PM
    • 574 Posts
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    tacpot12
    • #5
    • 7th Jul 17, 6:12 PM
    • #5
    • 7th Jul 17, 6:12 PM
    The most important thing is to establish how much the IFA will charge you for their advice and when/how they will be paid.

    I'd suggest you look to agree a fixed fee. I don't think they can be paid by the scheme you are transferring out of, but there is nothing to stop you paying them out of the 25% you receive IF the transfer goes ahead.
    • gramochroi
    • By gramochroi 7th Jul 17, 6:30 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    • #6
    • 7th Jul 17, 6:30 PM
    • #6
    • 7th Jul 17, 6:30 PM
    I do not intend to use the £24k as income, rather to find somebody to help me find investments which will provide an income. DB are payable in December, $43K plus £6.5k pension pa. Don'r know of any enhancements.
    • gramochroi
    • By gramochroi 7th Jul 17, 6:32 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    • #7
    • 7th Jul 17, 6:32 PM
    • #7
    • 7th Jul 17, 6:32 PM
    The initial consultation is free, but thank you, will find out and follow your advice.
    • TBC15
    • By TBC15 7th Jul 17, 6:36 PM
    • 144 Posts
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    TBC15
    • #8
    • 7th Jul 17, 6:36 PM
    • #8
    • 7th Jul 17, 6:36 PM
    Have suffered from depression and anxiety for years, unable to work, drawing benefits. The 25% TFS will allow me to come off benefits, which will be a huge joy. I can live off the £80k for at least two and a half years, but outside of that, really have no idea. I guess wait and see what the FA says.
    Originally posted by gramochroi
    The reason you are being paid benefits is because you need them, thatís what society is here for.

    Stick with the program, seek and use help as you can.

    When you are in a better frame of mind you will be in a better position to decide on pension matters.

    I wish you well.
    • gramochroi
    • By gramochroi 7th Jul 17, 6:40 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    • #9
    • 7th Jul 17, 6:40 PM
    • #9
    • 7th Jul 17, 6:40 PM
    Thanks, but just coming into this pension pot precludes me from benefits, which is absolutely fine. I have to give the FA's recommendations to my pension company before 1st September to release funds, so not a huge amount of time.
    • PeacefulWaters
    • By PeacefulWaters 7th Jul 17, 6:47 PM
    • 6,590 Posts
    • 8,084 Thanks
    PeacefulWaters
    Thanks, but just coming into this pension pot precludes me from benefits, which is absolutely fine. I have to give the FA's recommendations to my pension company before 1st September to release funds, so not a huge amount of time.
    Originally posted by gramochroi
    I'd have thought the standard pension age of your pension schemes is older than 55.

    I'm no expert on benefits, but if you choose not to touch your pension schemes early I'd expect your current set of state benefits to continue.

    What makes you think otherwise?
    • gramochroi
    • By gramochroi 7th Jul 17, 6:53 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    You could well be correct, but the opportunity to come off benefits is huge to me. I've always been grateful for the help, but very difficult to live on such a small amount and have always been embarrassed that I needed it.
    • xylophone
    • By xylophone 7th Jul 17, 7:02 PM
    • 22,026 Posts
    • 12,706 Thanks
    xylophone
    Have you actually enquired about an ill health pension from your scheme?
    • gramochroi
    • By gramochroi 7th Jul 17, 7:15 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    No, I never knew there was such a thing. I left the company thirteen and a half years ago.
    • PeacefulWaters
    • By PeacefulWaters 7th Jul 17, 7:28 PM
    • 6,590 Posts
    • 8,084 Thanks
    PeacefulWaters
    You could well be correct, but the opportunity to come off benefits is huge to me. I've always been grateful for the help, but very difficult to live on such a small amount and have always been embarrassed that I needed it.
    Originally posted by gramochroi
    Does that mean you don't have a September deadline?
    • gramochroi
    • By gramochroi 7th Jul 17, 7:46 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    In order for me to withdraw the 25% in December, my pension company has told me I have to get the FA's recommendations to them by 1/9. They then have to approve the recommendations before releasing funds.
    • PeacefulWaters
    • By PeacefulWaters 7th Jul 17, 8:25 PM
    • 6,590 Posts
    • 8,084 Thanks
    PeacefulWaters
    In order for me to withdraw the 25% in December, my pension company has told me I have to get the FA's recommendations to them by 1/9. They then have to approve the recommendations before releasing funds.
    Originally posted by gramochroi
    Why is December important?

    Having suffered anxiety myself I'm aware that poor decisions can often be made in a state of anxiety or depression.

    This is a massive financial moment for you. Not one where you want to make the wrong decision by rushing things or feeling rushed by things.
    • rjw4
    • By rjw4 7th Jul 17, 8:49 PM
    • 276 Posts
    • 162 Thanks
    rjw4
    Please declare the depression and anxiety to the adviser as you may be treated as a vulnerable client. I suffer with both and know that poor financial decisions are made when I'm suffering.
    • gramochroi
    • By gramochroi 7th Jul 17, 9:14 PM
    • 106 Posts
    • 84 Thanks
    gramochroi
    I turn 55 in December.
    • xylophone
    • By xylophone 7th Jul 17, 9:16 PM
    • 22,026 Posts
    • 12,706 Thanks
    xylophone
    Just because your pension is deferred does not necessarily mean that you cannot request early payment of your pension on grounds of ill health.

    Ask the administrator.
    • PeacefulWaters
    • By PeacefulWaters 8th Jul 17, 12:05 AM
    • 6,590 Posts
    • 8,084 Thanks
    PeacefulWaters
    I turn 55 in December.
    Originally posted by gramochroi
    But what age does the pension become payable by the trustees if you take no action now? (My guess is between age 60 and 65)

    What happens to your benefits if you leave the pension untouched for now? (My guess is they will continue to be paid)
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