Pearl Pensions Triviality Rules

col553

I have 3 small pensions with Pearl. and all are 09 policys

Tranfer values are £5641.00 + 4310.00 + 4490.99.

I am trying to withdraw these through ill health. My GP has filled in all the forms that Pearl sent stating that i would not be able to return to work again

I was told by Pearl that if the 3 together were below 15 k i could get 25% tax free and the rest would be taxed.

I rang Pearl today and was told that i would only be able to get the 25%, the rest would form an annuity investment.

Could someone give me some advice on what my options are.

I know that the 4490.99 can be taken at 50 and above but the other 2 can not be taken till i am 60. Yet when i first rang Pearl they told me that if the 3 were below 15K i could draw them all, less tax.

dunstonh

You cant get commutation to a lump sum unless the doctor writes to Pearl saying you have a life expectancy of less than a year. If it is an "unable to work" letter and not a "terminally ill" letter then commutation to lump sum doesnt apply unless you are aged 60 or over.

EdInvestor

I rang Pearl today and was told that i would only be able to get the 25%, the rest would form an annuity investment.

So they are indicating you could get 25% of 14,441 ( the total of the three)?

I know that the 4490.99 can be taken at 50 and above but the other 2 can not be taken till i am 60.

Why do you think this? Most pensions that have retirement dates above 50 can be converted into different types of pensions which you can then take at age 50.

Have you got any valuable guaranteed annuity rates attached to any of these policies? If so it may be worth waiting until 60 if that is what you have to do to get the rate and the policies are likely to rise in value.

Alternatively since the amounts are small you may be best to take the 25% cash and move the rest of the money to a cheap SIPP where it can be left to grow until you need it later.If you are only 50, it makes little sense to take an annuity now, as rates for youngsters are very low

defender_of_the_weak

If the other two pensions are written to 60 this suggests policies that may be written with the guaranteed annuity rates in. From memory these were phased out in 1987 and also did not apply to all pension contracts written. Check your policy doc's to see if you have a table showing the rates payable at certain ages. Even at age 60, again if memory serves (could be 65), the annuity rate was 9.3% which in todays market would be a good return.

You should get in touch with a good IFA who understands pensions and GARs.
Where you could find one however is another matter

dunstonh

Where you could find one however is another matter

cheeky bug-ger