Takeing my pension early

Floyd999

I have a pension which was taken out to cover a mortgage on my
home in 1988, I paid into it for 10 years but then was lucky enough to be able pay my mortgage off in its entirety.
I am 58 years old.
The fund stands at about £33,000 last time I checked
It has life cover of £25,000
I have a life limiting illness now
Q:How to cash in this pension and obtain the maximum lump sum from it ?

Thanks in advance
Floyd

GhIFA

These questions may sound a bit stark, apologies, they're not meant to be but will help ascertain what your options might be - To what extent is your illness life-limiting? Is it terminal? and if so what is the life expectancy?

Floyd999

I have HIV, I was only tested this year but it's likely had it for 12 years now as being my only time I could consider that I contracted it.

Life expectancy ?? Unknown

Floyd

GhIFA

Floyd, if your life expectancy is less than 1 year then you could commute the whole fund for a Serious Ill Health Commutation Lump Sum, on which there would be no tax to pay. If life expectancy is longer than 1 year then your options are as any other personal pension - 25% tax free lump sump, and income from the balance of the fund. Given that you are ill, it may be possible to obtain an enhanced annuity with a better rate than the standard open market annuity. Hope that helps.

Floyd999

Thanks for info
I don't want to deal with the IFA that deals with that pension .. They have not looked after my best interests since I signed on dotted line on its start and their annual fee virtually destroying growth on my pension pot for the the last ten years
So do I look for a specialist IFA in Pensions and how would I know
a good one ?

Floyd

Murphybear

Hi Floyd

Sorry to hear about your situation. I have spent the last few months looking into this as I have a fairly small pension pot and diabetes which is also considered to be life limiting (average life expectancy is 10 years less than statistical norm). Firstly, there is tons of advice out there, have a look at the Money Advice Service who produce loads of free booklets, can also be down loaded. If you know the size of your pension pot then you can get a rough idea of how much you get by using one of the comparison tools, there is a wide variation between providers so it's worth taking your time. Some of the providers don't offer enhanced pensions so beware. They can explain all the ins outs of the various options but cannot offer advice. For that I understand you will then need the IFA.

best of luck

:beer:

GhIFA

Floyd999 wrote: »

Thanks for info
I don't want to deal with the IFA that deals with that pension .. They have not looked after my best interests since I signed on dotted line on its start and their annual fee virtually destroying growth on my pension pot for the the last ten years
So do I look for a specialist IFA in Pensions and how would I know
a good one ?

Floyd

Try www.unbiased.co.uk to search for IFA's in your area, or ask for recommendations from friends/family/colleagues. Speak to two or three, get an idea of the costs, and go with one that you feel comfortable with.

dunstonh

I don't want to deal with the IFA that deals with that pension .. They have not looked after my best interests since I signed on dotted line on its start and their annual fee virtually destroying growth on my pension pot for the the last ten years

Most pensions from 10 years ago didnt pay any annual fee to the IFA. That may be why they havent "looked after you" because you were not paying them to do so. By all means, try another if you wish but don't rule out the original one on a misconception.

So do I look for a specialist IFA in Pensions and how would I know

You dont need a specialist for this.

Floyd999

dunstonh wrote: »

Most pensions from 10 years ago didnt pay any annual fee to the IFA. That may be why they havent "looked after you" because you were not paying them to do so. By all means, try another if you wish but don't rule out the original one on a misconception.

The pension was taken out in 1988 I am being charged £750 per year in fee's I found out recently.


Floyd

dunstonh

The pension was taken out in 1988 I am being charged £750 per year in fee's I found out recently.

But is it going to the adviser? Most of these go to the provider.

Floyd999

"But is it going to the adviser? Most of these go to the provider."

Well all this time I thought the IFA's that were dealing with my
pension were getting a fee .. (they were not I inquired)
All the fee's are charged by Zurich so no wonder I could never get any service from them the IFA (

Floyd