Which Pensions/Monies Can One Access Under New Rules?

Tojo_Ralph

I am trying to read as much as I can about the changes with regards to accessing DC pension pots, drawing down at 20% (up to annual income 40% tax limit) and I realised that I was not sure if the changes only affected "DC" pensions or if they affect all pension "monies"?

To explain my situation I have pension monies with three seperate providers and after reviewing communications, the monies/funds/pensions are described as follows.

1. "Former protected rights units". I recall this was/is contracted out SIPP money (the value of which can be transferred).
2. Pension Plan described as a "Money Purchase Plan" into which self/employer previously paid in. (the value of which can be transferred).
3. "L&G Worksave Pension Plan". (As I recall when signing up it was described as a DC purchase at time of sign up and into which self/employer pay in).

Thanks

atush

Well if any of your plans dont allow it, you could trqansfer them to one that does.

The only thing that comes to mind here, is that some plans (esp ones like protected rights but others as well) can have GARs or GMPs which could still be beneficial to use in retirement. AS the rates they give are better than you can hope to do either buying an annuity or investing yourself.

So while the whole flexibility free for all is intoxicating, don't throw out the baby with the bathwater. Do check these policies.

Tojo_Ralph

atush wrote: »

The only thing that comes to mind here, is that some plans (esp ones like protected rights but others as well) can have GARs or GMPs which could still be beneficial to use in retirement. AS the rates they give are better than you can hope to do either buying an annuity or investing yourself.

Having checked it's a Guardian Choices Personal Pension Plan taken out in early 1989 and which it looks like last received monies in 2006. I shall give them a call and get data on the GAR/GMP issue.

atush wrote: »

So while the whole flexibility free for all is intoxicating, don't throw out the baby with the bathwater. Do check these policies.

For me it all comes down to life expectancy, not wishing to buy an annuity, that dies with me, having the opportunity to burn pension cash before investments and thus ensure my financial legacy to my offspring is as good as it can be.

Am I correct in saying that if a pension fund is not converted to an annuity and the person dies before burning it off, the remaining funds pay out to their estate/trust/whatever?

I ask this question because I am considering ramping my contributions into my pension right up using monies that would ordinarily be subject to 40% tax. My untaxed monies would therefore be invested if I need them or paid out to my benefactors if I quit this mortal coil.

It just seems a far better investment than taking 60p in the £1 and trying to get it to work for you ..... That is of course if the government do not change the rules between now and retirement!