serious ill health retirement

hugheskevi

You might also find this guide helpful if you haven't come across it before, especially points 4,8,12 and 21.

It does sound like it may be a little complicated and i do wonder just how i could transfer my existing one to another.....then declare my terminal illness and that i want to take a lump sum a.s.a.p and get a better amount?

Is it me being very naive again (as i did say i have absolutely NO idea about pensions whatsoever) or would this be ok? It just seems like companies would not allow me to transfer it into their scheme only for me to tell them i have serious terminal cancer and i want to take it all out the next day? It just seems like they would have something to safeguard from people to be able to do this, or maybe it's fairly normal, i have no idea

In a Defined Contribution scheme it doesn't cost the scheme anything (aside from the cost of administration and loss of future business - but these are factored in to charges one way or another) as all you get back is the value of the pot. So it isn't any different than if you transferred in a pension then immediately withdrew it all under flexible draw-down or whatever. So it is just another routine process for them, nothing particularly special or complicated, very much business-as-usual.

jamesd

It's not particularly complicated for an IFA. Managing such things is a day to day part of their lives.

If you want a summary to give to an IFA on the phone it'd be this sort of thing: "I've been diagnosed as having less than twelve months to live, have no spouse and want to transfer a defined benefit pension to a personal pension so I will be able to take it all as a serious ill health lump sum". That neatly tells the IFA why your case is one where the transfer makes sense rather than "I want to transfer from defined benefit to personal pension" which wouldn't make sense usually. The summary also uses pension terminology words that will tell the IFA that you have at least a bit of knowledge about what you're doing.

For a pension that is not defined benefit you can just take a serious ill health lump sum directly.

The pensions will have charges for taking a serious ill health lump sum. A few hundred pounds perhaps. Maybe some charge for setting up the pension as well. Enough so that they won't lose money on the deal.

xylophone

Another thought - make sure that your will is up to date and the reasons for making any bequests clearly set out, particularly as it seems from what you have said that you may well wish to benefit persons who are unrelated and not living in this country.

atush

Exactly what I was going to say.

unless you want your estate to go to parents/siblings.

mexico2372

jamesd wrote: »

It's not particularly complicated for an IFA. Managing such things is a day to day part of their lives.

If you want a summary to give to an IFA on the phone it'd be this sort of thing: "I've been diagnosed as having less than twelve months to live, have no spouse and want to transfer a defined benefit pension to a personal pension so I will be able to take it all as a serious ill health lump sum". That neatly tells the IFA why your case is one where the transfer makes sense rather than "I want to transfer from defined benefit to personal pension" which wouldn't make sense usually. The summary also uses pension terminology words that will tell the IFA that you have at least a bit of knowledge about what you're doing.

For a pension that is not defined benefit you can just take a serious ill health lump sum directly.

The pensions will have charges for taking a serious ill health lump sum. A few hundred pounds perhaps. Maybe some charge for setting up the pension as well. Enough so that they won't lose money on the deal.

Thanks again. Yes, i don't mind some charges if it means i could possibly get a larger lump sum than just taking the lump sum from my current CSP.
Obviously right now i have no idea as to how much more (if anything?) i will get from transferring to a DC scheme and immediately withdrawing so i will play it by ear, but judging by yours and others comments it seems like i may get more by doing it this way so i'd be crazy not to at least look into it.

I have looked up a site advising on good IFA's in my area so will give a couple a call tomorrow and see what transpires. A couple also specifically state that the first actual meeting is free which is good.

To the other couple who made just quick comments, thanks also. Yes, i already was talking to my parents about making a will so when i do pop my clogs my little girl's education will be helped along with hopefully helping my g/f too, so that's also in hand as well.

If i get anywhere with the IFA tomorrow i'll pop back and update you all who have been kind enough to take the time to give some advice to me on here to let you know how it went.

Cheers, :beer:

jamesd

A free initial meeting is pretty much necessary. They can't charge you until they have informed you of their charges and got your signature. Do do them and yourself a favour by letting then know about it before arranging an appointment, though, just in case they aren't interested. Beyond that, there is no price regulation and like any open market the charges will differ.

hugheskevi

Obviously right now i have no idea as to how much more (if anything?) i will get from transferring to a DC scheme and immediately withdrawing so i will play it by ear, but judging by yours and others comments it seems like i may get more by doing it this way so i'd be crazy not to at least look into it.

You can use this archived CETV (Cash Equivalent Transfer Value) calculator.

Playing with some numbers suggest the transfer value will be about 12-15 times the value of your annual pension entitlement (excluding the automatic lump sum)

mexico2372

Oh yeah, i was going to tell them the situation as it stands anyway before making any set appointment/meeting.
I know some may turn their noses up at it as if it's all a fairly simple procedure for me to transfer then to quickly withdraw it all then maybe there's not enough time involved for them to take it on.
After all, time = money for them so the longer the better if they charge by the hour. But i guess some will like to take it on board just for a quick easy earner so it'll probably be a hit n miss scenario.....hopefully more hit than miss so i can get it done quick and easy.

Hugheskevi: Your calculator doesn't work, maybe because i'm using the ipad? or maybe my ipad's as dumb as me! ha ha.

hugheskevi

Hugheskevi: Your calculator doesn't work, maybe because i'm using the ipad? or maybe my ipad's as dumb as me! ha ha.

It is an Excel spreadsheet from Cabinet Office, so probably won't work on an iPad. Not a big miss though, as you'll get accurate transfer figures in due course.

You can request a CETV from the scheme administrator at any time, which would be helpful to inform the discussion with the IFA, so you might want to do that soon.

atush

mexico2372 wrote: »

Thanks again. Yes, i don't mind some charges if it means i could possibly get a larger lump sum than just taking the lump sum from my current CSP.
Obviously right now i have no idea as to how much more (if anything?) i will get from transferring to a DC scheme and immediately withdrawing so i will play it by ear, but judging by yours and others comments it seems like i may get more by doing it this way so i'd be crazy not to at least look into it.

I have looked up a site advising on good IFA's in my area so will give a couple a call tomorrow and see what transpires. A couple also specifically state that the first actual meeting is free which is good.

To the other couple who made just quick comments, thanks also. Yes, i already was talking to my parents about making a will so when i do pop my clogs my little girl's education will be helped along with hopefully helping my g/f too, so that's also in hand as well.

If i get anywhere with the IFA tomorrow i'll pop back and update you all who have been kind enough to take the time to give some advice to me on here to let you know how it went.

Cheers, :beer:

I am confused. You mention a child but before said no children.

Children can inherit as much as 100'% of estate and perhaps over rule expressions of wishes in court/trustees?. for step children and other close children like god sons/daughters they must be mentioned in a will