Releasing and combining local government pension schemes.

happydancer007

:j
I visited a finance adviser yesterday to see how I could free some of my local government pensions to raise cash and reinvest. He said I should be able to release them combine to a new pension fund and release 20% tax free cash sum. For doing that for me he wants 3% of my total pension pot which would currently mean approx £3,500. This sounds an awful lot of money for a couple of hours work?
Are there any templates I could use or has anyone got any advice please on how I should go about this?

dunstonh

For doing that for me he wants 3% of my total pension pot which would currently mean approx £3,500. This sounds an awful lot of money for a couple of hours work?

Actually it seems very cheap. £5k would be closer to the mark.

What makes you think that its only a couple of hours work?

Its one of the highest risk transactions an adviser can carry out. it requires advanced qualifications to be a specialist in this and statistically, the recommendation for 9 out of 10 cases is that you shouldnt transfer the pension. The default position is effectively a mis-sale unless proven otherwise.

Your objective his mis-sale written all over it (cash to reinvest).

Are there any templates I could use or has anyone got any advice please on how I should go about this?

Most alternative providers will want an IFA to sign off on it. However, Standard Life apparently dont seem to mind doing occupational pension transfers on the cheap. Hargreaves Lansdown have a low cost too.

happydancer007

Thank you for your input, gives me food for thought. I hadn't really wanted to cash them is as I had always been advised that local government schemes are usually good quality.
I had wanted only the lump sum payments really if that was possible to build an extension for my mum who is in declining old age and a man that I am a carer for who has severe learning and physical disabilities. I have tried to access grants but to no avail and as I have planning approval I wanted to go ahead but still have a third of the build to find and I don't want a further loan.

hyubh

happydancer007 wrote: »

I had wanted only the lump sum payments really if that was possible to build an extension for my mum who is in declining old age

How old are you? And are you an active member of the LGPS?

happydancer007

quote "How old are you? And are you an active member of the LGPS?"



I am 56 and no longer with Lgp. Just paying state pension now.

xylophone

You have a deferred pension

http://www.lgps.org.uk/lge/core/page.do?pageId=101769

Have you explored drawing the pension early?

hyubh

happydancer007 wrote: »

I am 56 and no longer with Lgp.

If you left since April 2014 then you could take the pension early (with reductions) from age 55, otherwise it's 60 short of transferring out as you've suggested. If you were to take the pension early then you would have to take it all rather than just a lump sum; the only option for a lump sum only would be to transfer it all out to a private pension as you say and (possibly) wait until April.