Can I cash in my pension?

Bedan_Upent

Proxy wrote: »

Summary of that programme from BBC.co.uk





Take heed, people.

The moral of the story being "beware of half baked schemes". Other expert & professional wealth management providers have been placing the previously tied-in contents of pension funds - with full knowledge of HMRC - into lawfully tax free environments as a lump sum pre age 55 since 1994. The key is surrendering benefits for dependants. Current traditional providers have a vested interest in keeping members locked into high hidden admin/trustee fees being enjoyed in return for the promise of constantly diminishing returns. Anyone with over £60,000 in a pot can take advantage.

gexton

Such a person can take any previously untouched pensions entirely as a lump sum.

Proxy

Bedan_Upent wrote: »

The moral of the story being "beware of half baked schemes". Other expert & professional wealth management providers have been placing the previously tied-in contents of pension funds - with full knowledge of HMRC - into lawfully tax free environments as a lump sum pre age 55 since 1994. The key is surrendering benefits for dependants. Current traditional providers have a vested interest in keeping members locked into high hidden admin/trustee fees being enjoyed in return for the promise of constantly diminishing returns. Anyone with over £60,000 in a pot can take advantage.

gibberish. Total and utter nonsense.

gadgetmind

Bedan_Upent wrote: »

Anyone with over £60,000 in a pot can be taken advantage of.

There, I've fixed it for you!

slopemaster

My Q isn't exactly 'can I cash in my pension' as I've skimmed enough of the thread to get the answer to that. But similar.

I'm 56 and stopped work but have some income from letting property. I'd like to get hold of a lump sum for a big purchase.

I have a small final-salary pension due to be paid when i'm 60.
Also an even smaller stakeholder pension whcih I can take when I want.

But, is it possible to take the tax free lump sum (25%) now from either or both, WITHOUT taking the rest now. Or can you only get the lump-sum when the pension actually starts to be paid?

Aegis

slopemaster wrote: »

My Q isn't exactly 'can I cash in my pension' as I've skimmed enough of the thread to get the answer to that. But similar.

I'm 56 and stopped work but have some income from letting property. I'd like to get hold of a lump sum for a big purchase.

I have a small final-salary pension due to be paid when i'm 60.
Also an even smaller stakeholder pension whcih I can take when I want.

But, is it possible to take the tax free lump sum (25%) now from either or both, WITHOUT taking the rest now. Or can you only get the lump-sum when the pension actually starts to be paid?

You can do that with the current value in the stakeholder pension, though you'll need to transfer it to a policy which has an income drawdown facility if you want to take the lump sum and no income at present. I've never encountered a final salary pension which allows similar, so that's a non-starter.

slopemaster

Oh, OK
Thanks very much for such a quick answer!

(I might be able to get enough for a second-hand camper van...):)

colink24

Hi All

I had a pension back in 2001 with my then employer, which I contributed to on a monthly basis, though only small amounts due to age and income. I have recently fished out the paperwork, as I left the company in 2004 and forgot all about it.

I just rang Standard Life and they advised that the pot was currently worth a little over £5000. I do not currently have a pension, though I do work full time and have the option of taking up a pension through my employer. I turn 32 this year, so have decided I probably need to start contributing, not least so that my employer pays in!

Is the best option to speak to my employer and get some advice on what to do with the old pot? Standard Life said I can transfer with no penalties, probably due to the age of the pension.

Any advice appreciated, including other investment options with that pot, if there are any.

Thanks

atush

This needs to be asked, on your won thread, on the main pension forum.

This thread is for those who are wanting to cash in their pensions (which in general they can't).

Before you post, ask SL if your old pension has any guarantees attached to it, and the costs to leave it there. Then you can compare these (and the funds availab,e/) with your employers pension.

Make sure you put enough into your new pension to get the Max employers contribution.

RichandJ

Cross posted from main board. You will be caught if you try to release funds before you're allowed:

http://www.hmrc.gov.uk/pensionschemes/liberation.htm