Should I transfer my Zurich pension plan?

makerfield

Hello. I am a newby and could with some advice on what to do with my current pension. I am 58 years old, a Type 1 insulin dependent diabetic and my selected retirement age in the pension plan is 60 years (June 2016). My knowledge of pensions is poor, hence this post.

I took out a pension with Allied Dunbar (now Zurich) back in 1993 and have continued paying into this plan to date. The plan invests in the following funds and a review letter in January 2014 states their respective values;

• Accumulation Managed 3/4 AP - £80,648.15
• Capital Managed 3/4 AP - £9,414.74

In January 2014, the total value of the pot was £90,062.89 and the transfer value was £88,773.07, the difference being the fees chargeable.

I have made a call to Zurich today and they tell me the total value is now £98,871.91 and the transfer value is £98,041.01

With regard to benefits of the plan, the only one stated on the original policy is "Full returns of funds" and I am not sure what this means.

I am also not sure about the new legislation now in place so my questions are as follows;

1. Can I draw down 25% of the fund in June 2016 (tax free when I turn 60) and transfer the remainder into a new pension plan (possibly a SIPP) to avoid buying an annuity?
2. After the first tax-free 25% draw-down, would the current plan allow further draw-downs (taxable) each year or would I be forced to transfer to another plan to make this happen?
3. What is the likely cost of the transfer from a new provider?
4. What is the difference between the Accumulation and Capital units?
5. I am considering putting an immediate stop to my monthly contributions and making the pension "paid up". Would this be a wise decision?

I know that this old Allied Dunbar pension has not performed well due high charges. Having read a few posts in the forum about Allied Dunbar, there is little I can do as the cost of a transfer to a new provider is likely to be high (I assume approx. 5%) and this cost is unlikely to be recovered by a better performing fund, despite the lower charges.

I am married, self-employed and presently in work. My wife is unemployed and unless my health deteriorates, I do not aim to retire until I am 65 or so.

Any advice given will be much appreciated.