S32 Question

Berks_2

Hi Guys,

I had a company pension for 10 years and I did a S32 transfer to Norwich Union now Aviva 23 years ago so a total of 33 years.
Now that I am 50 I would like to cash it in before the April deadline so I phoned up Aviva and the initial response was that my pension was locked until 65.

My question is:
Is there any way around this could I possible take it out of Aviva and put it somewhere else?

Thanks in advance

Regards

Berks

dunstonh

Now that I am 50 I would like to cash it in

you cannot cash it in.

Is there any way around this could I possible take it out of Aviva and put it somewhere else?

Yes.

However, the reason it is "locked" until 65 is almost certainly due to the guarantees that exist. Those guarantees could be larger lump sum entitlement (I frequently see aviva S32s with 100% TFC entitlement) or guaranteed minimum pension (which is usually much more than the fund value ever has a hope of achieving) or a guaranteed annuity rate or a combination of these.

Why do you want to access it?

Berks_2

Hi,

Thanks dunstonh for replying,

As I am not working and have recentley been diagnosed with diabetes and some other health problems I would rather have the money now if I could than wait untill 65.

I am not bothered about having a bigger lump sum if I left it in untill 65 so if it is possible to get it earlier then I would prefer to do that.

Regards

Berks

dunstonh

I am not bothered about having a bigger lump sum if I left it in untill 65 so if it is possible to get it earlier then I would prefer to do that.

You can do it then but you shouldnt do it without first realising what you are giving up. It can be significant and not something you should do without knowing the facts.

Berks_2

Thanks again for the advice I will definately find out what I could be giving up.

Am I able to take it out early due to the ill health or is there another reason and would I be able to make the April deadline.

Regards

Berks

Berks_2

dunstonh wrote: »

You can do it then but you shouldnt do it without first realising what you are giving up. It can be significant and not something you should do without knowing the facts.

Hi Guys,

Dunstonh says I can take out my S32 Pension earlier can anyone explain how and whats involved and would I be able to make the April deadline.

Much appreciated

Berks

dunstonh

Dunstonh says I can take out my S32 Pension earlier can anyone explain how and whats involved and would I be able to make the April deadline.

You would need to transfer it to a personal pension or SIPP that does unsecured pension income. You may find that many providers will treat a section 32 buy out bond as an occupational pension and require an IFA to sign off on it.

Time wise you are still just about ok. Most transfers take 2-3 weeks although a section 32 would possibly take longer. You are starting to cut it fine either way.

Berks_2

Many thanks