Newbie pension question

hibbo765

Dear forumites... have just found this forum and find it fascinating.

I have a question for you and would appreciate your thoughts and advice please.

Given the Chancellors pensions changes announced recently. I have a £29k pension that I want to access. Am 54 now and 55 in Oct. I would like more control over my funds.

How and when would I go about it. Am I right in thinking I can access this as tax free money no an no need for an annuity?

John

hugheskevi

I have a £29k pension that I want to access. Am 54 now and 55 in Oct.

Unless you have a protected minimum pension age, you can access the pension at age 55.

However, it won't be until April 2015 that you will be able to withdraw it all (unless you have other pension income in excess of £12,000 p/a).

I would like more control over my funds.

Why?

Does your current provider not offer a wide enough range of funds? If so, that may suggest changing provider rather than changing the savings vehicle.

Pensions offer as much control over funds as other vehicles.

How and when would I go about it.

Contact your pension provider in April 2015.

Am I right in thinking I can access this as tax free money no an no need for an annuity?

No.

25% will be tax free, the remaining 75% will be added to your taxable income and income tax applied accordingly.

There will be no need for an annuity from April 2015. Before then you have to use capped drawdown, flexible drawdown or an annuity.

dunstonh

Given the Chancellors pensions changes announced recently. I have a £29k pension that I want to access. Am 54 now and 55 in Oct. I would like more control over my funds.

What control do you want that you do not already have? Pensions can invest in almost anything quoted on the LSE and whole of market investment funds. That is about 30,000 different options. Is that not enough for you?

Anyway, you cant take the money out as the triviality rule applies from age 60. In april 2015 you can access the whole pot but it would almost certainly be the wrong thing to do as you would create an unnecessary tax charge. especially if you objective it to control your own investments which you can do in pensions already.