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contracted out advice

I wonder if anyone could help me with advice regarding a contracted out pension sum. I have heard that the relevent rules are changing on A-day which I believe is sometime in april. I contracted out of serps in 1987 and went with the prudential. In 1997 I stopped working at the age of 49 the pension fund has grown to approx £23,000. I am on benifits and do get some income support. My main benifit is incapacity and D.L.A. I am now 56 years old and would like to get all of this money, but I am not sure if it is possable. If it is possable how would it affect my benifits? Any help would be appreciated. thanks david,

Comments

  • dunstonh
    dunstonh Posts: 121,241 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You will be able to commence the pension after A day. However, the tax free lump sum will be treated as a lump sum for savings purposes and the income will be treated as income as well. These could impact on your benefits.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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