Is there a 'just a lump sum' pension scheme?

NotSoSpeedy

Hi, I hope someone can help me here, I have read quite a few threads, but not seen what I want to know, but I might have missed it!

I need to know if there is such a thing as a pension where you just put in a lump sum and that is it, not weekly or monthly additions.

Just a little background in case it makes a difference to you knowledgeable people.

I am 57, getting divorced, only have a part time job, no pension scheme at all. I can have half my husbands pension in the financial settlement of our divorce. But the paperwork says, the money has to go into another pension scheme.............which I dont have and cant afford to put into, and keep living!..........so the reason I need to know if there is some sort of 'lump sum' pension scheme.

Thanks for any anticipated help!

dunstonh

Virtually all pensions accept single contributions. In this case, a pension sharing order has to go into another pension and is treated very similar to any other pension transfer.

EdInvestor

You can move the money to another pension scheme and then immediately take a pension income- an annuity - (and possibly also tax free cash?) from it if you want, as you're over 50.

You probably need to talk to an annuity advisor such as

https://www.annuity-bureau.co.uk

to help you get this sorted out.

NotSoSpeedy

That was a very fast response. Thank you so much.........it has been very hard to find this simple (well to you!) information. It is much appreciated.

fez_2

Notsospeedy, as you are 57 now this doesn't apply to you.

For anyone else reading this, a reference in a previous post suggests that you can invest in a pension and "then immediately take a pension income- an annuity - (and possibly also tax free cash?) from it if you want, as you're over 50."

From April 2006 this rule changes. New pension legislation means you can't take your pension until age 55 at the earliest.

dunstonh

fez wrote:

Notsospeedy, as you are 57 now this doesn't apply to you.

For anyone else reading this, a reference in a previous post suggests that you can invest in a pension and "then immediately take a pension income- an annuity - (and possibly also tax free cash?) from it if you want, as you're over 50."

From April 2006 this rule changes. New pension legislation means you can't take your pension until age 55 at the earliest.

Not quite.

It doesn't increase to age 55 until 2010.

With respect to Eds post, he has recommended one particular IFA with an annuity focused website. There is really no such thing as an annuity advisor. Perhaps they would only exist in very large firms where the IFA only does annuities. However any IFA would be able to help you and a local one would probably do a better job of it as well (easier as well as you wont need to post your birth and marriage certificate or passport).

I'm also not sure where the part relating to annuities comes from as there is nothing in your post to suggest commencement of the pension at this time is something you want to do. Just transferring it to a pension is what you requested. If that is the case, you can disregard the information on annuities at this time as that only comes into play when you commence benefits.

NotSoSpeedy

Many thanks again............all this information is very helpful to me.

EdInvestor

dunstonh wrote:

With respect to Eds post, he has recommended one particular IFA with an annuity focused website.

The reason I posted the link to that site is that it has lots of useful info on it such as how much annuity income you can buy with a certain amount of pension fund money right now, and calculators to work out drawdown (an alternative to annuities) and such.

It's quite an informative site for people to read up on pension and annuity issues.

I got the improession this lady might need a bit of extra income right now, if it could be arranged.

If she doesn't no problem: but she'll need to get informed about this annuity business sooner or later, no time like the present.:)