Pension Reciprocation Plan - Is this legal?

dunstonh

The_Sherrif wrote: »

So in a nutshell if i transfer it over i'll get 8k now for the transfer " free " but the other 72k less 6% fees will just slowly get wiped out and in the long run it would be financial suicide?So what i should do is just leave it where it is.Am i covered if the company who has my frozen pension ceases to trade.? This whole pension buisness seems like a minefield on who can you trust.

You have a deferred pension (not frozen). It is index linked to keep up in value in real terms and when you retire you can commence benefits as you would with any other pension.

You have financial protection of 90% of the benefit should the scheme collapse (possibly more depending on funding levels).

Pensions are mainly a minefield as there are many different schemes available (e..g personal pensions are very different to deferred pensions which have different rules to frozen etc). There is also a lot of misinformation as many people dont realise that the word "pension" covers so many different types and they think what applies to them must apply to someone else (who may have a different type of scheme).

The_Sherrif_2

Thanks for the advice much appreciated , just going to sit tight on it.

AJC0801

hi just reading all this is pension loans online a scam site then - i have been in talks with them lately, not signed anything yet but was considering as the lady seemed really helpful. She assured me that my current pension company would not release my funds into any other pension that was not fsa regulated. That i would get a full loan agreement to sign before anything happens, meaning that i would not have to pay more than was in my pension at the end, and that i would get 50% of my pension pot now. To be totally honest, there is not a massive value in there anyway, so i thoght that the 50% would suit me better now than in 20+ years time,. She assured me that i could repay my loan early too if i wanted to. I was also told that when all the transfer forms came through to me i would have 7 days to sign or cancel, and my 50% would be transferred to my bank within 14 days, plus they only deal with UK pension companies and nothing overseas..and i could transfer my pension from them to another pension company at any time should i wish too..am i being scammed - am i best not to continue??? i dont care if there is nothing left at the end (as mad as that seems) as i have other means of income when i'm older but need money now and poor past means i cant get a normal loan,. will they take all my pension pot and not give me my 50% share, or will i at least get my 50% now..any advice please..as not sure whether to phone back and carry on with it, or whether to run before i even start this process..thanks

dunstonh

To be totally honest, there is not a massive value in there anyway, so i thoght that the 50% would suit me better now than in 20+ years time,.

So, what happens when the 50% left is wiped out, then HMRC come to you to pay 55% on the 50% you have taken out and then you have to repay the loan but there are no funds left in the pension to pay it?

plus they only deal with UK pension companies and nothing overseas

But you said the pension it was going to was not FSA regulated.

i wish too..am i being scammed - am i best not to continue???

yes you and no you shouldnt.

i dont care if there is nothing left at the end (as mad as that seems)

Thats good as that is the likely outcome. However, what about when it comes to repaying the loan or the 55% HMRC tax penalty (plus interest potentially)?

AJC0801

hi thanks for advice - will they actually go ahead and give me a loan though or are they going to transfer my pension and do a runner?? i said they can only transfer to FSA regulated pension so from what i have been told my current pension company will only transfer it to a legitimate pension scheme so surely pension loans are using a legitimate company...i just want to be sure they will produce the 50% of funds as a loan..

taking_stock

AJC0801 wrote: »

hi thanks for advice - will they actually go ahead and give me a loan though or are they going to transfer my pension and do a runner?? i said they can only transfer to FSA regulated pension so from what i have been told my current pension company will only transfer it to a legitimate pension scheme so surely pension loans are using a legitimate company...i just want to be sure they will produce the 50% of funds as a loan..

there's just no helping some people

you were told it's a scam and still want to continue?
maybe they transfer it abroad, to a qrops and then give you half its value and keep the rest and then, a little while later, HMRC send you a bill for approx 1/4 of the pension value (ie. half your 'loan').

it's not legal for a good reason, to save people from themselves!!

AJC0801

TAKING STOCK...Its not that there is no helping some people so please dont patronise me - i have come on here for honest advice and am taking it all on board. I am not about to go ahead and do something stupid - i just wanted to know more about it all!!! From the point of view of what i had been told by the pension loan company i did think it was too good to be true - but then on the other hand i am in serious debt that could be wiped clean with the 50% they were offering me - i have just secured a fantastic job and therefore once my debt is wiped clean i will have the opportunity to save £1000 per month - so i was trying to get my head round the fact that if they are giving me 50% (which is 10K) i can save that amount back up in ten months and wipe clean the loan with them (as the terms say i can pay back early) or even be able to pay back any fees levered by the HRMC and then transfer the pension back into another scheme...BUT yes i have taken all comments on board and think i will sit tight - i have lots of payments due to me (various savings policies) that are due to me when i am 55 so what i was trying to say is i am one of the lucky ones that doesnt need to worry about finances when i am older, but i certainly wory about them now as my new job will only just meet all my monthly outgoings for the next 5 years and i have no chance of saving anything...thats why i was on here asking for help BEFORE i get scammed.

dtsazza

So... completely overlooking the pension scam aspect of this...


You're (roughly) £10k in debt.
You now have a good job meaning that you can pay this off in 10 months.
You want to take out a £10 loan to pay off the other £10k debts.
You'd be able to pay off this loan in 10 months.

I don't even see the benefit here. If you really can pay of £10k of debt in under a year, then just do it. If you get a loan from these guys, you won't have reduced your debt at all; it doesn't give you any kind of shortcut.

Taking out a loan can't clear your debts. Only saving money from your income and paying it off can clear your debts.

Don't even consider getting into the horrible mess that is this pensions scam, for essentially no benefit.

Z300

They also have a loan scheme for solar power, it states

Thank you for contacting pensionbackedloans
I have pleasure in attaching a factsheet and application form for the Solar Loan Offer.
How Does It Work?
If you do not already have a Self Invested Personal Pension (SIPP) you will need to transfer your pension to one.
Your SIPP then lends money to Solar Solutions Ltd.
You will see that the loan is repaid to you at an interest rate of 7% per annum and that the loan is secured against the Government backed “Generation tariff”.
You have stated that your pension is valued at £xxxxx
Once you have transferred your pension to your SIPP we will then be paid £xxxxx. and we rebate this to you minus our £395 fee. As this is commission cash back it does not need to be repaid.
You will also need to contact your current pension provider to obtain transfer documents which need to be returned to us as well.
Once the forms are completed please return them together with 1 form of photo ID and 1 utility bill to:

Pension Backed Loans
Suite 7
36 Gervis Road
Bournemouth
BH1 3DH

any thoughts on this scheme!!

Aegis

Z300 wrote: »

They also have a loan scheme for solar power, it states

Thank you for contacting pensionbackedloans
I have pleasure in attaching a factsheet and application form for the Solar Loan Offer.
How Does It Work?
If you do not already have a Self Invested Personal Pension (SIPP) you will need to transfer your pension to one.
Your SIPP then lends money to Solar Solutions Ltd.
You will see that the loan is repaid to you at an interest rate of 7% per annum and that the loan is secured against the Government backed “Generation tariff”.
You have stated that your pension is valued at £xxxxx
Once you have transferred your pension to your SIPP we will then be paid £xxxxx. and we rebate this to you minus our £395 fee. As this is commission cash back it does not need to be repaid.
You will also need to contact your current pension provider to obtain transfer documents which need to be returned to us as well.
Once the forms are completed please return them together with 1 form of photo ID and 1 utility bill to:

Pension Backed Loans
Suite 7
36 Gervis Road
Bournemouth
BH1 3DH

any thoughts on this scheme!!

Same scam, different name, by the looks of it.

To put it really simply, unless you are terminally ill, there is no legitimate way to unlock your UK pension before age 55.