Private Pension

and123_2

Hi,

Wonder if anyone can help,

My dad is 62 and retired through ill health (terminal cancer) Quie A number of years ago he took out a private plan with the Prudential. According to the last statement there is a little over £67,000 in this pension . He is wanting to know if there is anyway her can get access to some if not all of this money. it would enable him to pay off his mortgage and would certainly ensure a more comfortable future worry free future as he is not in a position to enjoy the predicted benefits.

Could anyone advise.

dunstonh

He is wanting to know if there is anyway her can get access to some if not all of this money.

Depending on what type of pension it is he can get 25% of it as a tax free cash lump sum.

However, apologies for being morbid here, but if he is terminally ill then he may be better off not commencing the pension if there is a spouse/partner as on death, they would get 100% of that value tax free. It may be that its best left for them to pay off the mortgage rather than using the 25% and finding the rest taxable at 35%.

EdInvestor

and123 wrote: »

My dad is 62 and retired through ill health (terminal cancer) Quie A number of years ago he took out a private plan with the Prudential. According to the last statement there is a little over £67,000 in this pension . He is wanting to know if there is anyway her can get access to some if not all of this money.

Certainly he can get 25%, and the rest if put in income drawdown will be paid out minus 35% tax on his death to his beneficiary. In some cases he may be able to get all the money out.

http://www.thisismoney.co.uk/ask-an-expert/article.html?in_article_id=450767&in_page_id=92