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SERPS Opt Out (again)

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Bantex_2
Bantex_2 Posts: 3,317 Forumite
edited 11 April 2014 at 2:12PM in Pensions, annuities & retirement planning
Years ago I opted out of SERPS.
I get a statement every year and the pot seems to be around £60k.
I am now 56.
Under the new rules can I just cash the whole thing in and invest elsewhere (BTL, Lotto, etc)?

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  • mania112
    mania112 Posts: 1,981 Forumite
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    Seems to be possible as from April 2015.

    I wouldn't be surprised though if this is delayed past the elections in May 2015.

    Whether you SHOULD do this is another question.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Bantex wrote: »
    Under the new rules can I just cash the whole thing in and invest elsewhere (BTL, Lotto, etc)?

    That's what's proposed but you need to think about whether this is the best course of action.

    Taking the lot all at once will incur a lot of tax, so you might be better taking it over several years. However, this depends on your tax, status, your other investments, and your other pension provision.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • dunstonh
    dunstonh Posts: 116,842 Forumite
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    Under the new rules can I just cash the whole thing in and invest elsewhere (BTL, Lotto, etc)?

    Not until next year.

    If you plan to reinvest then taking it out like that could be a foolish option. Pensions have the same investment options as ISAs. So, paying tax to take it out of a tax free wrapper to put into another tax free wrapper with identical investments and charges doesnt make sense unless you do it on drip to ensure you dont creep into higher tax bands.
    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.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
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    Asking because I have just realised that the male line in my family, none have lived beyond 60 for the last five generations.
  • xylophone
    xylophone Posts: 44,726 Forumite
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    As you are over 55, you could draw a pension from this policy now if you wished?

    Example https://www.scottishlife.co.uk/scotlife/Web/Site/Consumer/Individuals/conIndTake.asp?menuID=131&MenuItemID=621&MenuType=PAGE
  • dunstonh
    dunstonh Posts: 116,842 Forumite
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    Asking because I have just realised that the male line in my family, none have lived beyond 60 for the last five generations.
    So, if you have a family and other fuinds, it would be tax efficient to leave it in the pension.
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Bantex wrote: »
    Asking because I have just realised that the male line in my family, none have lived beyond 60 for the last five generations.

    What were the causes of death?
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
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    Thrugelmir wrote: »
    What were the causes of death?
    It would appear the only common factor is bad luck.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Bantex wrote: »
    It would appear the only common factor is bad luck.

    :eek::eek::eek::eek::eek::eek::eek:
  • flearida
    flearida Posts: 21 Forumite
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    funnily enough,the link xylophone posted above,is the type of pension i have,having already taken out the tax free 25% a round 5 years ago,i made enquires last week,about drawing an annual sum out,it was just under 3000 per annum.and because im on esa benefit.am i right in thinking it would be tax free,as benefit and the 3000 pounds would be less than the 10,000 pounds tax limit ? thanks
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