transferring a paidup plan to another

otleyboy

Hi,
i have a paidup pension with clerical medical which has about 26000 in it. i am 56 and have a plan which is with standard life which i pay into and so does my employer.pot is around 38000
Question is.. how do i take 25% and then transfer the paidup "pot" rather than get an annuity with it. ( i need the 6k to go towards my daughters wedding).
thanks.

kidmugsy

otleyboy wrote: »

Hi,
i have a paidup pension with clerical medical which has about 26000 in it. i am 56 . how do i take 25% and then transfer the paidup "pot" rather than get an annuity with it. ( i need the 6k to go towards my daughters wedding).

I used to have an assortment of personal pensions and stakeholders, and a Retirement Annuity Policy. I transferred the lot to a SIPP (in my case Hargreaves Lansdown), took the 25% and invested the rest for the farther future. HL provide famously good service, have a good website, and are reckoned decent value for smallish SIPPs - less than, say, £40k. Other firms to consider might include Cavendish Online. In your shoes I might begin by asking Clerical Medical whether they allow the manoeuvre you'd like to make.

greenglide

otleyboy wrote: »

Question is.. how do i take 25% and then transfer the paidup "pot" rather than get an annuity with it. ( i need the 6k to go towards my daughters wedding).
thanks.

If you want to get the 25% lump sum then you will have to "crystallise" the pension. You will have to start drawing the benefit from the paid up plan so you cannot transfer it into the one that that you are still contributing to.

Should you really be wanting to do this anyway? It sounds as though you are trying to use you pension to fund something you cannot really afford? Robbing your future self isnt, generally, a good idea.

mania112

greenglide wrote: »

Should you really be wanting to do this anyway? It sounds as though you are trying to use you pension to fund something you cannot really afford? Robbing your future self isnt, generally, a good idea.

Treating as an interest free loan might be a better way of looking at it - so long as you're willing to repay the pension.

dunstonh

Question is.. how do i take 25% and then transfer the paidup "pot" rather than get an annuity with it. ( i need the 6k to go towards my daughters wedding).

You cant with CM. You would need to transfer it to a drawdown plan or pension with drawdown facilities.

It is a transaction with consequences. So, make sure you read up on those before doing it.