Pension selling

Grazzier

Hi all, newbie here.

I have read some advice on pensions herein so I am aware of pension liberation etc, and I know about some genuine items to do with pensions like drawdown.

What I dont know and havent seen anything about thus far is can anyone sell their pension ? I am over 55 and am looking to entirely release or gain as much cash lump as possible via ditching/selling my pension.

Can it be done ?

PS: I already have taken a 25% cash lump withdrawal a few years ago after turning 50 but the pension still remains a decent value of many tens of thousands currently.

Thanks for any pointers/advice.

G

Linton

You cannot sell your pension. Assuming your pension is Defined Contribution, from April next year you will be able to withdraw some or all of the money from it taxed as income.

Advice - consider whether that leaves you enough to live on for the rest of your life. If you do want the cash withdraw it over sufficient time to avoid paying excessive tax.

thenudeone

Your pension isn't yours. It is held in trust for you. You can't sell it.

If you have read up on "pensions liberation", you would know it is illegal and almost always a stupendously bad idea.

In what way does what you describe as "selling your pension" differ from "pension liberation" (if at all)?

kidmugsy

If you are 55 or older you can take some out now by doing "capped drawdown". You can take out uncapped amounts from 6/4/15.

If your provider doesn't offer these services, you can transfer to a provider who does. Beware of charges.

kangoora

I thought taking a TFLS before the age of 55 was illegal? Or are there some schemes which allow it at the age of 50?

xylophone

I thought taking a TFLS before the age of 55 was illegal? Or are there some schemes which allow it at the age of 50?

The OP says it was some time ago.

http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm08200060.htm

jamesd

Grazzier wrote: »

What I dont know and havent seen anything about thus far is can anyone sell their pension ?

YOu can't sell it but there's no need to do that anyway.

Grazzier wrote: »

I am over 55 and am looking to entirely release or gain as much cash lump as possible via ditching/selling my pension.

Just wait until after 6 April 2015 and you can take any amount of a pension pot out. Because you have already taken the tax free lump sum the whole amount taken out will be added to your taxable income for the year in which you take it. This means that it would usually be best to do it over several years so you don't end up paying higher rate income tax.

If what you did to get the 25% involved buying an annuity that is providing you income now you can do nothing. An annuity purchase is a once only deal with no way to back out later, except early on in mis-selling types of case. But since you still have a pot value it is clear that you didn't do this, I'm just mentioning it for completeness for other readers.

So just wait a few months then use the new freedoms from April.