Private Pension cash in

Johnbo

I have been receiving a private index linked pension from a large international company pension fund for just over 3 years but the pension is small at just over £3000/annum. In November 2011 I elected to take a tax free lump sum of circa £20000 which resulted in the above annual pension.
Could anyone help in terms of the options available following the new Government legislation on private pensions.
What is the value of the pension?
Can an amount be drawn from it?
Can it be sold and what would it be worth?
I would appreciate any advice.

edinburgher

If you've bought an annuity, the value of the pension is £3000/annum, you're stuck with it and have already had your lump sum.

Johnbo

Thanks for your quick response and will just have to try to live longer to receive the pension.

greenglide

So you elected to take a lump sum of £20,000 which resulted in receiving a pension of "only" £3,000 per annum?

If you had taken a smaller lump sum you would have got a larger pension! A lump of that size would tend to indicate that you surrendered pension to get that.

What makes you think that you won't "live long enough" to get your pension? You have already had the £20,000 lump sum and £9,000 in payments s you can't really complain.

hyubh

edinburgher wrote: »

If you've bought an annuity, the value of the pension is £3000/annum, you're stuck with it and have already had your lump sum.

Sounds more like a DB pension to me ('linked pension from a large international company pension fund'), which if so would make the April changes doubly irrelevant.