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Cashing in pension whilst in IVA
mavon
Posts: 168 Forumite
First may i appologise if this is not relevant on this board.
My husband is currently 2 years into a 5 year IVA.We survive on my state pension ,his miniscule private pensions (£27 per month and yearly £200 pension) and pension credit. Next year he is due a pension which has been in a freedom bond for many years.The pot will be about £13,000 .If he were to take cash instead of an annuity would this be classed as a windfall as far as the IVA is concerned and would he need to put all the cash into the IVA or could he offer a full and final payment and keep the rest to do much needed repairs etc on our house which we cannot afford to now? We also still pay a mortgage out of the pittance we receive.
My husband is currently 2 years into a 5 year IVA.We survive on my state pension ,his miniscule private pensions (£27 per month and yearly £200 pension) and pension credit. Next year he is due a pension which has been in a freedom bond for many years.The pot will be about £13,000 .If he were to take cash instead of an annuity would this be classed as a windfall as far as the IVA is concerned and would he need to put all the cash into the IVA or could he offer a full and final payment and keep the rest to do much needed repairs etc on our house which we cannot afford to now? We also still pay a mortgage out of the pittance we receive.
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Comments
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Next year he is due a pension which has been in a freedom bond for many years.The pot will be about £13,000 .If he were to take cash instead of an annuity would this be classed as a windfall as far as the IVA is concerned
Almost certainly it would be classed as a windfall as you would be taking it out of the pension and putting it into your bank account. It would lose the protection it currently has.
Also, it is a section 32 buy out bond so taking it out as a lump sum may be a short sighted and bad thing to do if there is a guaranteed minimum pension on it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
what if someone could offer a full and final settlement to the IVA during this year?0
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