DWP okays PR money in SIPPs from Oct 1

EdInvestor

At last the deed is done

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=306827&re=3267&ea=116577
http://www.dwp.gov.uk/mediacentre/pressreleases/2008/jun/pens074-270608.asp

Don't all rush folks.;)

*A major side effect of this is it's going to make it much easier for many people over 50 to extract the 25% tax free cash from the pension.This has been allowed for 2 years but was formerly very difficult for anyone whose pension had protected rights money in it. Such a cash injection could be quite a lifeline for some people, given the state of the economy at the moment.

masonj3

Hi

As u already know im not very up on this, will this mean that if someone has funds in a SIPP with with zero income or a very low income that they will also now be eligible for pension credit untill they make changes that would increase the monthly income from the SIPP and take them over the threshold??

Yours thickly lol x

EdInvestor

Err,no. You can't defer or otherwise not claim a pension so as to be eligible for benefits instead.

Retired_I.F.A.

Don't all rush folks.;)

Cant see it making an already expensive product any more popular especially as a personal pension has accepted protected rights for years now.

masonj3

didnt think so lol - had been told previously by a welfare advisor that if you have been finacially advised that it is best not to take your pension in the short term as long term it would be more beneficial to wait then you could claim pension credit in the short term and that this would be ok with pension service otherwise it could legally be deemed as discrimination - dont quite think it would be viewed that way in reality though lol x

EdInvestor

masonj3 wrote: »

had been told previously by a welfare advisor that if you have been finacially advised that it is best not to take your pension in the short term as long term it would be more beneficial to wait then you could claim pension credit in the short term and that this would be ok with pension service otherwise it could legally be deemed as discrimination

AFAIK you are not required to claim a pension earlier than the maturity date on the policy, which will normally be 60 or 65, because you could suffer a reduction penalty for taking it early.So if your pension retirement date is 65, then it can be possible (for men) to get pension credit for 5 years without being required to claim the pension. As the pension credit age rises in line with the increase in women't retirement age, this will be phased out.

In any case it's not relevant to people who want to access pension funds at age 50.:)

wombat42_2

EdInvestor wrote: »

At last the deed is done

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=306827&re=3267&ea=116577
http://www.dwp.gov.uk/mediacentre/pressreleases/2008/jun/pens074-270608.asp

Don't all rush folks.;)

*A major side effect of this is it's going to make it much easier for many people over 50 to extract the 25% tax free cash from the pension.This has been allowed for 2 years but was formerly very difficult for anyone whose pension had protected rights money in it. Such a cash injection could be quite a lifeline for some people, given the state of the economy at the moment.

FAR OUT :beer::eek::D

EdInvestor

Good piece in the Guardian explaining how to go about finding and dealing with old contracted out pensions.

http://www.guardian.co.uk/money/2008/jul/05/pensions.occupationalpensions