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    • niagrafalls
    • By niagrafalls 13th Jul 17, 7:27 PM
    • 14Posts
    • 3Thanks
    niagrafalls
    LGPS pension transfer
    • #1
    • 13th Jul 17, 7:27 PM
    LGPS pension transfer 13th Jul 17 at 7:27 PM
    Hi everyone,
    i would be really grateful for some help, my situation is that in 2013 due to the recession we did an assisted voluntary sale of our home and the business crashed we did not go bankrupt but our credit report is basically shot, we now live in rented property our financial situation has improved back to what it was before the recession and we have saved money. I have a deferred lgps pension and I have asked for the cetv . I am 55 in October, my question is I want to transfer it out to give us enough cash adding to what we have saved in the past 4 years to buy a small house, otherwise we are looking at a lot of rent, do you think an IFA would be able to have this frank discussion with me. I understood I thought from the pension transfer guidelines that financial hardship can be a reason or have I misunderstood. It just makes sense to me that I need the money now for somewhere to live and the rent saved would be significant.
Page 1
    • xylophone
    • By xylophone 13th Jul 17, 8:08 PM
    • 22,026 Posts
    • 12,706 Thanks
    xylophone
    • #2
    • 13th Jul 17, 8:08 PM
    • #2
    • 13th Jul 17, 8:08 PM
    Assuming that the value of your benefits is greater than £30,000, you will need to consult a Pensions Transfer Specialist.

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/?gsasro=1&gsaq=pension%20transfer%20specialist

    If you succeed in transferring your benefits to a DC arrangement, it would be possible to take 25% of the value as a tax free lump sum.

    If you drew the balance, it would be taxed as income in the tax year of receipt.

    This could amount to a lot of tax.
    • johndough
    • By johndough 13th Jul 17, 8:13 PM
    • 633 Posts
    • 246 Thanks
    johndough
    • #3
    • 13th Jul 17, 8:13 PM
    • #3
    • 13th Jul 17, 8:13 PM
    Hi

    I feel that an IFA would give an initial interview for Lo-Cost/No-Cost, but the answer may not be in favour of your course of action.

    You would need to transfer to some form of personal pension and hopefully get 25% tax free sufficient to your needs and take drawdown at the appropriate rate of tax.

    I am not too hopeful on this being readily approved, but I see the lack of options, except perhaps if you took the pension early with max lump sum and a small income.

    OVERLAPPING ANSWERS
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