Section 32 buy out with GMP

iris

I have a Section 32 buy-out with GMP with Clerical Medical which matures at the end of March 2006. Would it be worth delaying taking this until after 'A' Day and would I then be able to take more tax free cash. What about if the 'pot' total is £16,000 and the GMP is £1,600 per annum? This doesn't seem a big enough 'pot' to me to provide a GMP of £1,600 pa plus a tax free cash sum. Would it be better to take what Clerical Medical offer or to shop around?

Any advice would be appreciated.

dunstonh

With maturing pensions, it's always best to compare what the existing provider will offer against the others. Until you have figures from open market and CM, you will never know which is best.

You should get the figures checked prior to A day as lump sums on a S32 can be higher than 25% as well as lower.

EdInvestor

iris wrote:

I have a Section 32 buy-out with GMP with Clerical Medical which matures at the end of March 2006. Would it be worth delaying taking this until after 'A' Day and would I then be able to take more tax free cash. What about if the 'pot' total is £16,000 and the GMP is £1,600 per annum? This doesn't seem a big enough 'pot' to me to provide a GMP of £1,600 pa plus a tax free cash sum. Would it be better to take what Clerical Medical offer or to shop around?

Any advice would be appreciated.

Looks like quite a valuable guarantee there, when you look at current rates.:)

http://www.annuity-bureau.co.uk/tab/rates_current.aspx

Step one is to get a quote from CM and then come back here and check it out.