investing my deffered pension

jacktempo

Please Help
Hi,
My deferred pension sceme from an old emploter have contacted me and said they no longer want to have deferred members,and have offered two alternatives to me.

They state the value of my deferred pension at present stands at £100,000 .

The company that runs it have offered me a cash lump sum of £15,000 ( which i pay tax on ) , or an additional £50,000 to invest in another private/company scheme. ( bringing me £157,000 to invest in pension )

My present company will not allow transfer into their pension scheme.

So I need to know, whats my best route ?

I believe I should accept the extra money to invest, but were ?
Do I re-pension into Cavendish or another company ?
Do I want a SIPP or personal pension, or stake holder pension.

I am 44 and would like to retire at 55, take a maximum lump sum and a regular smaller monthly payment.

I have a month to decide what and were to put my pension.
Cheers
Tempo

Cautious_Investor_3

Hi

What a decision you have to make!

This is a situation where you really must take advice as to the best course of action. Use a suitabily qualified IFA with the G60 qualification or equivalent, you can find one by visiting www.unbiased.co.uk

If you are concerned about an IFA offering biased advised to earn a commission, then pay an upfront fee for their advice. But unless you are experienced in these matters you really do not quality, unbaised advice.

I hope this helps.

The Cautious Investor

jacktempo

Thakns
I have a IFA on the case, but will tell him I wish to pay a fee for his advise, and not a %.
I am meeting him next week, but just wondered what advise/ideas I could gather off the knowledge on here.
Many thanks
Paul

dunstonh

I believe I should accept the extra money to invest, but were ?
Do I re-pension into Cavendish or another company ?
Do I want a SIPP or personal pension, or stake holder pension.

I think the option to transfer your pension (re-pension is not a real word or an industry word. Its only used on this site by Martin) using Cavendish is out. a) because you dont know what you want or need and b) they wont accept it without an IFA signing off on it and in that case it would be cheaper to use the IFA (as Cavendish dont have a very wide range of pensions available and the best ones are typically not on their list or they dont have the best terms)

A SIPP is an experienced investor option. Your comments suggest you are not. So, you can eliminate that. A stakeholder is the basic option. A personal pension is in between (but can also be cheaper than stakeholder). There is also the possibility of a section 32 buy out bond

I am 44 and would like to retire at 55, take a maximum lump sum and a regular smaller monthly payment.

One assumes you have other savings/investments as the pension isnt likely to be enough to do this.

jacktempo

Thanks,
yes I will have another source of income on top of this pension.
I am just looking at maximising this pension without much risk, as i am looking at this as part income at 55.

Any other information gratefully recieved, especially 32 option ?
Paul