Cash for transferring my pension
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lctcb
Posts: 21 Forumite
I have been offered the following scheme and wondered if anyone else had come across anything similar or had any advice...
If I agree to transfer my current pension pot of around £40,000 I will be given a cash payment of around £9,000.
I have been assured the pension will go into a UK SIPP and will be under FSA and HMRC rules and regs.
The pension will never be transferred overseas and will always stay within the UK. I will have to leave the pension in this scheme for 10 years and their will be a deduction of £3,500 from the pot before it goes into the new scheme and I have been told this is the only cost to me.
Furthermore I have been guaranteed that the pot will grow by a minimum of 5% per anum.
The only downside I can see is
1) I will not be able to access my tax free 25% when I reach 55
2) Should I declare it then the £9,000 could be liable for tax
So am I missing something as this sounds a not to bad way to un-lock some cash?
If I agree to transfer my current pension pot of around £40,000 I will be given a cash payment of around £9,000.
I have been assured the pension will go into a UK SIPP and will be under FSA and HMRC rules and regs.
The pension will never be transferred overseas and will always stay within the UK. I will have to leave the pension in this scheme for 10 years and their will be a deduction of £3,500 from the pot before it goes into the new scheme and I have been told this is the only cost to me.
Furthermore I have been guaranteed that the pot will grow by a minimum of 5% per anum.
The only downside I can see is
1) I will not be able to access my tax free 25% when I reach 55
2) Should I declare it then the £9,000 could be liable for tax
So am I missing something as this sounds a not to bad way to un-lock some cash?
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Comments
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its a scam - dont do it
fj0 -
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Furthermore I have been guaranteed that the pot will grow by a minimum of 5% per anum.
The only downside I can see is
2) Should I declare it then the £9,000 could be liable for tax
So am I missing something as this sounds a not to bad way to un-lock some cash?
There is no way of guaranteeing any return.
Statements like "should I declare it" are a great clue that you are being invited to not declare income because it will be taxed if you pay income tax. In other words you would be breaking the law if ypou do not declare itFew people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
There is no way of guaranteeing any return.
Statements like "should I declare it" are a great clue that you are being invited to not declare income because it will be taxed if you pay income tax. In other words you would be breaking the law if ypou do not declare it
I am naturally suspicious about these schemes but the fact that it will be handled by an FSA company and that it will stay in the UK gave me a little comfort?0 -
What you propose is illegal, and yes is most likely a scam.
If you are under age 55 it is most definitely not allowed/illegal and not only will you possibly lose the lot, you will also be charged and fined by HMRC by 55%. It is therefore a SCAM
See the sticky, can I cash in my Pension on the main pension page.0 -
I am naturally suspicious about these schemes but the fact that it will be handled by an FSA company and that it will stay in the UK gave me a little comfort?
It is definitely illegal as others have said.
Have you actually checked the FSA register or are you just accepting their word on it?0 -
Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0
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What you propose is illegal, and yes is most likely a scam.
If you are under age 55 it is most definitely not allowed/illegal and not only will you possibly lose the lot, you will also be charged and fined by HMRC by 55%. It is therefore a SCAM
See the sticky, can I cash in my Pension on the main pension page.
But I am being told that I am not cashing in my pension but just receiving a payment because I am willing to transfer it into a UK reg HMRC SIPP. If it dodgy would my pension provider agree to the transfer? Also if as I have been assured it will be handled by an FSA company would they get involved if it was a scam?
Believe me I am sceptical but some of the above facts seems to give it some substance?0 -
Sounds Suspicious. Subtle Scam Scheme Suckers Susceptible Savers.
Can you paste the offer verbatim as you received it - you can leave out the company name but I don't know why you would - we could do with a laugh0 -
But I am being told that I am not cashing in my pension but just receiving a payment because I am willing to transfer it into a UK reg HMRC SIPP. If it dodgy would my pension provider agree to the transfer? Also if as I have been assured it will be handled by an FSA company would they get involved if it was a scam?
Believe me I am sceptical but some of the above facts seems to give it some substance?
Read the link in BobQ's post. Sound similar?0
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