New pension rule 2015

chris_james_2

I have a couple of pensions and would like to access the smaller of them after April 2015 - this is a Scottish Widows one.
Am i able to access 25% as a tax free sum and keep the rest invested in the scheme and at some point in the next 2 years (i will be 65 in October 2016) use the open market option to transfer the rest of that fund along with my second pension to get an annuity?
Scottish Widows are completely unable to advise and say call back after April 6th next year !!!
Anyone able to clarify this for me?

Dunnit

The government has support of the two main other parties to introduce this in time for April. 2 issues for you: The bill has to fully pass through parliament; SW will not necessarily offer such a service so you may have to transfer your pension to another provider.

dunstonh

Am i able to access 25% as a tax free sum and keep the rest invested in the scheme and at some point in the next 2 years (i will be 65 in October 2016) use the open market option to transfer the rest of that fund along with my second pension to get an annuity?

Yes. but you may need to transfer to a different pension to allow it.

Scottish Widows are completely unable to advise and say call back after April 6th next year !!!

Which is correct. They hold no FCA authorisations to give advice. So, it would be a breach if they did. Plus, they dont know the product alterations that will be made (or not) to the hundreds of versions of pensions they have on their books.

Generically, yes you can do it but you may need to do it elsewhere.

Linton

You could do it now if you wanted by merging the pensions onto a platform that supports drawdown (eg a SIPP) rather than use the OMO. You then take the equivalent of 25% of the small pension as a lump sum and leave the rest in drawdown without actually withdrawing any income. When you are ready in a couple of years time buy an annuity.

You may be able to merge after crystallisation, I dont know.

jamesd

chris_james wrote: »

Am i able to access 25% as a tax free sum and keep the rest invested in the scheme and at some point in the next 2 years (i will be 65 in October 2016) use the open market option to transfer the rest of that fund along with my second pension to get an annuity?

You can do what you have described now as can anyone who is 55 or older. Take 25% tax free lump sum and place the remainder into capped income drawdown taking no income from drawdown. Individual pension providers or products do not have to offer this but many places do and all you'd need to do is transfer to one of them.