Protected rights pension drawdown

matthorp

Hi

About 18 or so years ago, my parents' financial advisor got me to opt out of SERPS.

I had no clue then (or now really) about what I was doing, I just signed on the dotted line (I was only about 18 at the time).

I had totally forgotten about it until I just came across the plan statement from 2007.

Anyway, a quick google later and confusion has reigned!

I understand that as of April 6 2012 drawdown is going to be available. Does that mean I am able to draw down the money and invest it elsewhere, or is this option only available when I reach retirement age?

Please excuse my ignorance on the subject, I would be grateful if anybody could help me (in very simple language!)

dunstonh

I understand that as of April 6 2012 drawdown is going to be available.

Drawdown has been available for years. There are no rule changes in 2012 which affect drawdown.

The only thing happening in 2012 regarding protected rights is that they will be reclassified as non-protected rights.

Does that mean I am able to draw down the money and invest it elsewhere, or is this option only available when I reach retirement age?

Why would you want to draw the money and put it elsewhere? You bring it out of tax free regime into a taxable one and reduce the death benefits at the same time.

matthorp

"Standard Life head of pensions policy John Lawson (pictured) says the Government’s position is that, up until 2012, protected rights must be used to buy retirement income. However, policymakers will remove the differences between protected and non-protected rights from 2012 onwards, allowing savers to cash in their entire protected rights pot."

Many thanks for your reply. The above quote is what I came across which lead me to ask the question.

In all honesty, I don't really understand what I did back then and what my best course of action (if any) should be.

jem16

matthorp wrote: »

In all honesty, I don't really understand what I did back then and what my best course of action (if any) should be.

You now have a pot of money in a private pension instead of having SERPS/S2P from the state. It should probably work out better for you. You can leave that pot where it is or you can transfer it to another private pension. If you don't know whether to do that or not seek help from an IFA.

When you are age 55 you will be able to access this pension as opposed to having to wait until your state retrirement age to get it.