Anyone give me a pointer on where to look?

lewroll

Thanks for your input guys!
So is it the general opinion that I need an independent financial advisor?
Can I trust an IFA who uses the IFA website?
Regards

jem16

lewroll wrote: »

So is it the general opinion that I need an independent financial advisor?

If you know what you want to do then no you don't need an IFA. If you don't know what you want to do then yes.

Is there a reason you want to take the maximum lump sum? - £1 of pension to £9 of lump sum is a terrible commutation rate.

Can I trust an IFA who uses the IFA website?
Regards

https://www.unbiased.co.u is just a database of IFAs - some pay to have a bigger advert and are therefore more prominent but all can be trusted. Best way is be recommendation from friends or family buat failing that use the website and speak to a few. See what they would charge.

Loughton_Monkey

lewroll wrote: »

Thanks for your input guys!
So is it the general opinion that I need an independent financial advisor?
Can I trust an IFA who uses the IFA website?
Regards

If it is a final salary scheme, then you do not need an IFA as there is probably nothing he/she could advise you on. It is only in the most exceptional circumstances that moving the pension away from your employer scheme might be better.

All you need do is decide on the lump sum (or not). You will almost certainly find that it has a degree of inflation linking and will provide a widow's pension. It might also be 'guaranteed' for a fixed number of years.

You should read anything they send you, and anything you don't understand, or want to know more about, ring them

lewroll

jem16 wrote: »

Is there a reason you want to take the maximum lump sum? - £1 of pension to £9 of lump sum is a terrible commutation rate.

Hi guys once again thanks for your help.

I am thinking that it would be better to take the maximum lump sum because when all my income is taken into account after I retire, I am in the lucky position that I believe that I do not need this pension to be all income (if that makes sense!). I really hate paying income tax and would like to have some splurge money!!!

It is the really poor rate of £1 of pension to £9 lump sum that is really bugging me if I am honest.

Is it do-able to move my pension money to another provider, take the maximum lump sum at a better commutation rate and then get a pension from that new provider which is similar to the pension being offered to me please?

Any help appreciated.

jem16

lewroll wrote: »

Hi guys once again thanks for your help.

I am thinking that it would be better to take the maximum lump sum because when all my income is taken into account after I retire, I am in the lucky position that I believe that I do not need this pension to be all income (if that makes sense!). I really hate paying income tax and would like to have some splurge money!!!

Two figures you have to take into account are the personal allowance which for over 65s is just under £10k at the moment. However another part to think about is the age related allowance - at the moment if you have more than £22,900 of taxable income (including your state pension) you start to lose some of that higher personal allowance.

It is the really poor rate of £1 of pension to £9 lump sum that is really bugging me if I am honest.

Are you one of the cases where you don't have an automatic lump sum and have to use the commutation to get a lump sum?

http://www.bcsss-pension.org.uk/benefits-retirement.htm#lumpsum

Is it do-able to move my pension money to another provider, take the maximum lump sum at a better commutation rate and then get a pension from that new provider which is similar to the pension being offered to me please?

Any help appreciated.

The only place to move it is to an insurance company who will provide a tax-free lump sum plus annuity or income drawdown. Whether that is better or worse is probably what you need advice from an IFA on.

Someone on here might have an idea but you would need to provide more figures - i.e. what is the amount of pension you are expecting from the BCSS?

Stargazer57

lewroll wrote: »

Hi guys once again thanks for your help.

I am thinking that it would be better to take the maximum lump sum because when all my income is taken into account after I retire, I am in the lucky position that I believe that I do not need this pension to be all income (if that makes sense!). I really hate paying income tax and would like to have some splurge money!!!

It is the really poor rate of £1 of pension to £9 lump sum that is really bugging me if I am honest.

Is it do-able to move my pension money to another provider, take the maximum lump sum at a better commutation rate and then get a pension from that new provider which is similar to the pension being offered to me please?

Any help appreciated.

In most DB schemes you'll get nothing like the full value of the pension if you transfer it elsewhere.

As for the terms for the lump sum you'ld need over three times as much cash (i.e. about £27 for each £1 of pension given up) to get enough to buy the amount of pension given up (which is a good test of fair value). So whilst saving tax sounds attractive it still wouldn't make the transaction good value even if you paid 50% tax.:rotfl:

Much better imo to take the full pension and either save up before splurging, like we used to in the old days, or if you must splurge now, borrow what you need and pay off the loan using your surplus income. What ever you do, don't commute index-linked pension at age 60 at 9 to 1.

lewroll

Are you one of the cases where you don't have an automatic lump sum and have to use the commutation to get a lump sum?

Yes

Two figures you have to take into account are the personal allowance which for over 65s is just under £10k at the moment. However another part to think about is the age related allowance - at the moment if you have more than £22,900 of taxable income (including your state pension) you start to lose some of that higher personal allowance.

I will only be 60 so think that there is no age related allowance for me at the moment. I think I only have the bog standard tax allowance for a single person unless someone can tell me differently?

Much better imo to take the full pension and either save up before splurging, like we used to in the old days, or if you must splurge now, borrow what you need and pay off the loan using your surplus income. What ever you do, don't commute index-linked pension at age 60 at 9 to 1.

Am I looking at this wrongly? It will take about 4 years of pension without any tax being deducted and without me spending any of it, to get the same amount of lump sum.

Many thanks once again guys!

jem16

lewroll wrote: »

Yes

I will only be 60 so think that there is no age related allowance for me at the moment. I think I only have the bog standard tax allowance for a single person unless someone can tell me differently?

No you are correct for age 60. However you really need to be looking further than that at age 65. You can't change your mind in 5 years.

Am I looking at this wrongly? It will take about 4 years of pension without any tax being deducted and without me spending any of it, to get the same amount of lump sum.

Many thanks once again guys!

What we are saying is that a 1:9 commutation rate is extremely poor. If you have need of a lump sum because you have immediate plans to use it then fine. However if you are just taking it with no immediate plans then perhaps think again.

Basically it all boils down to what your retirement needs are - is it income or income plus you want to use a lump sum immediately.

lewroll

Hi Guys,

Thought I would give you an update. I have consulted an IFA and am now waiting for some concrete information from my pension supplier.
Many thanks for your help and I will let you know what happens!
:beer: