Can I cash in my pension?

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  • RichandJ
    RichandJ Posts: 1,087 Forumite
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    jamesd wrote: »
    Badger99, if the income from your work pensions and state pensions and annuities combined pay you £20,000 of more you can use flexible drawdown to take out all of the money in any personal pension pot.

    5850matty, your friend should currently give up on transferring a pension pot to the US. There are major incompatibilities between UK and US pension rules that in practice seem to even block the usual QROPS route that works for other countries. Your friend can take the income whenever UK rules allow it and can have that income sent to the US. Last time I looked into this there were a few US QROPS pension providers but still reports that it was impossible in practice to transfer to them.

    Agree 100% re US QROPS, we've never been able to do one.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

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    Why did he think "systolic" ?
  • dunstonh
    dunstonh Posts: 116,581 Forumite
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    The pension advisory service have issued a warning publication.

    http://www.pensionsadvisoryservice.org.uk/media/826600/members_leaflet.pdf

    It includes a couple of scenarios and warning signs of things to look out for. Many of which we have seen on this board.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    It looks like most of the "sting" comes from the tax man applying charges even when there is a clear case of fraud and even when most of the monies are transferred back to the pension scheme.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • dunstonh
    dunstonh Posts: 116,581 Forumite
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    gadgetmind wrote: »
    It looks like most of the "sting" comes from the tax man applying charges even when there is a clear case of fraud and even when most of the monies are transferred back to the pension scheme.

    Whilst the individual was targeted by a fraudster, the transaction itself was an attempt by the individual to defraud HMRC by doing something that is not allowed. You only do these things because you have been told by others you cant do them.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dpccrc6
    dpccrc6 Posts: 14 Forumite
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    Hi can some one advise me?

    I am currently in the process of being made redundant after 25 years service, within my company pension policy it states 50 as being the youngest age to draw our pensions. I am 54 and intend drawing my pension and investing in a business however, my question is will my redundancy pay be affected if I do take my pension?

    Someone has told me it will?
  • atush
    atush Posts: 18,730 Forumite
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    Not sure it can be as they are 2 separate issues. You can put redundancy into a pension though.

    The issue is, are you sure you can retire at 54 rather than 55? How much is your redundancy pay? If you take your pension, is it a final salary one, or a Defined contribution one? Will you take the income from the pension or just the tax free LS?
  • dpccrc6
    dpccrc6 Posts: 14 Forumite
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    atush wrote: »
    Not sure it can be as they are 2 separate issues. You can put redundancy into a pension though.

    The issue is, are you sure you can retire at 54 rather than 55? How much is your redundancy pay? If you take your pension, is it a final salary one, or a Defined contribution one? Will you take the income from the pension or just the tax free LS?



    Yes confirmed again today I can take my pension at 54

    Estimated redundancy £91,400

    However if I take my pension my

    Estimated Redundancy £16,500
    Estimated Lump Sum Pension £39,300
    Estimated Annual Pension £13,100


    Is this how it works and why?
  • atush
    atush Posts: 18,730 Forumite
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    Dont know, but repost this on the pension board.

    It appears to be a non standard product, and may have final salary/DB components.
  • Asco
    Asco Posts: 1 Newbie
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    The rates for annuities are currently quite low. Transferring a pension pot to convert to Income Drawdown incurrs fees. Which is the best option in today's financial climate?
  • dunstonh
    dunstonh Posts: 116,581 Forumite
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    Asco wrote: »
    The rates for annuities are currently quite low. Transferring a pension pot to convert to Income Drawdown incurrs fees. Which is the best option in today's financial climate?

    The best option is the one that is right for the individual. Annuity and drawdown are two very different things with different risks. Drawdown is the higher risk option. It is classed as a risk level that is above the level of the average UK consumer. Capacity for loss/reduced income has to be taken into account. Someone with a high guaranteed income may be able to afford drawdown losses. Whereas someone with no alternative income and not a large amount available may not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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