Aviva Section 32 buyout

Carlosthehamster

I am not thick but really have no idea about pensions.

I left an employer in 1988 and my pension fund was transferred to Norwich Union under a Section 32 buyout. My nominated retirement age was determined as 60 which is in seven months time. The fund, from statements, appears to be £25000 to which £57000 in bonuses has already been added but I have no information about terminal bonuses. I have a guaranteed pension of £4200 at age 60 or £6200 at 65 under this policy. I intend to take my pension at that time and would like to take a tax free lump sum.

Is this possible under this policy as there is no mention of lump sum in the policy document? Does anyone have any idea about how much the terminal bonus is likely to be and, therefore, the total value of the fund on maturity?

dunstonh

Is this possible under this policy as there is no mention of lump sum in the policy document?

Within the plan itself you may not be allowed to take a full lump sum. It could be reduced to even removed to cover the cost of the guarantees. However, if you really wanted the lump sum you could transfer to a personal pension which would give up the guarantees but allow the 25% to be taken. Sometimes the guarantee level is such that its not worth taking the 25%. Other times the breakeven point can be very many years down the road and taking the 25% can be better for you.

Does anyone have any idea about how much the terminal bonus is likely to be

Impossible to say as there are too many variables. However, you should be able to find out what the current accrued terminal bonus is.

and, therefore, the total value of the fund on maturity?

probably not dissimilar to the value it is now, providing there isnt another significant market decline in the next few months.

rbennett43

I am in a similar position to one of the earlier mails on this subject. My Aviva Section 32 Policy matures on my 65th birthday later this year & I have been told by Aviva that I have no choice but to take this as an annuity. I was rather hoping that I could take part if not all of the value as cash. Is there really no options for me; I am resident in Australia & have no tax commitments in the UK if this is relevant.

xylophone

rbennett43 wrote: »

I am in a similar position to one of the earlier mails on this subject. My Aviva Section 32 Policy matures on my 65th birthday later this year & I have been told by Aviva that I have no choice but to take this as an annuity. I was rather hoping that I could take part if not all of the value as cash. Is there really no options for me; I am resident in Australia & have no tax commitments in the UK if this is relevant.

Is QROPS relevant to your case?http://www.comparetheqropsmarket.com/index.php/about-qrops/ might provide some information/starting point for research?