withdrwing pension

alistair007

could anyone advise me as to the best thing to do regarding my pentions ?i am currently employed and on a pension scheme at the moment but on perminant sick leave , i have two work pensions from previous employers would it be best to merge the two of them as would like to get some money out

bendix

*sigh*

How old are you?

alistair007

i am 54 years old

brianrhill

Assuming these are occupational type schemes, they have their own little minefields often, particularly if there is any form of guarantee if you chose to take the pension before the stated retirement age. So the word, or words, here is/are extreme caution - talk with a pension specialist. Once you've got the documentation through from the schemes you'll see why.

Brian

bendix

OK, so you're old enough, but you need to provide more information.

What sort of pensions are they? Have you already taken a 25% tax free sum from them?

alistair007

liftime annuity, BGI Aquila life 60:40 Global Equity Index Fund (lifestyle) don't know if this means anything.
I have not recieved any money from the pensions.

alistair007

alistair007 wrote: »

liftime annuity, BGI Aquila life 60:40 Global Equity Index Fund (lifestyle) don't know if this means anything.
I have not recieved any money from the pensions.

thanks for the help

EdInvestor

Do you need an income from them yet (will they impact on and benefits you might receive?) Or is it just the tax free cash you would like?If the latter you can put the pensions into 'income drawdown' where they remain invested for later (usually in a SIPP) and just take the 25%.To do this you would probably need to transfer both of them.
You can also take an income from a drawdown fund, rather than converting the money to an annuity.This may be a better bet as you are young and annuity rates are poor at that age.

alistair007

Thanks, you have been a great help. i will go for the 25% option.
Thanks again

jem16

alistair007 wrote: »

Thanks, you have been a great help. i will go for the 25% option.

Both options provide 25% tax-free lump sum.

You need to decide whether to also take an annuity with the rest or do income drawdown. You can't just take 25% and do nothing else.

alistair007

what is the difference between drawdown and annuity