L&G Buy Out Pension - Ditch/Switch/Drawdown?

saintalan

xylophone wrote: »

http://www.hl.co.uk/pensions/sipp/tax-benefits-of-a-sipp..

Just looking first at SIPP but am I eligible as I have previously taken Tax Free Lump Sums from other pensions plus also at my age?

Thanks for the links etc:)


Cheers

Alan

xylophone

As I understand it you could take a lump sum from the L&G pension that you have not yet brought into payment - why not give HL a ring in the first instance to discuss your options?

saintalan

xylophone wrote: »

As I understand it you could take a lump sum from the L&G pension that you have not yet brought into payment - why not give HL a ring in the first instance to discuss your options?

There was me thinking I opened a relatively easy thread:)

Will HL discuss all your options or do they want you to use an IFA?

Thanks

Alan

saintalan

saintalan wrote: »

Just looking first at SIPP but am I eligible as I have previously taken Tax Free Lump Sums from other pensions plus also at my age?
...

It would appear that there are no barriers to me converting my L&G plan to a SIPP. I could also add to it and get Tax Relief, £3600 gross per year and also get the allowance for the 3 previous Tax years. This could have been greater if I could deem Residential Property Income as Relative earnings but don't believe I can (hard research that one!)

I could then look to use Flex Drawdown over the coming years at a rate not to exceed basic rate tax.

My OP also mentioned I would like to use Vanguard LifeStrategy which I could use with both SIPP and proceeds from Drawdown. This would mean me moving from L&G which I see the only downside as a reduction of my TFLS back to 25%.

One other concern I had is Recycling although reading the HMRC pages think its OK.

I am not close to acting on this yet, still lots to research but all comments welcome.

Cheers

Alan

saintalan

saintalan wrote: »

Thanks to you and others, I am sure I haven't yet asked the last question but this is where I am at following a call to L&G.

1 There is NO GMP

2 There are NO Guaranteed Annuity Ratess

3 As at April 2006 I had a Protected Cash Free (PTF) sum of £15983 based on fund valuation of £54686 i.e. approx 29%

4 I have asked for an update on point 3 but told probably remain same percentage on Current Valuation of around £74k

5 I have asked for a Annuity estimate

6 There are no other guarantees.

7 L&G do provide Flexible Drawdown option.

Many Thanks

Alan

On finally getting a quote from L&G they have now quoted a fund valuation of £74624 with a Tax free LS of £24105 which is about 32%.

Should this not be a fixed percentage or are there other factors considered.

Thanks

Alan