Pension wound up.

Isla78

Hi,

I hope someone can help clarify things for me please. I am 36 and have just been informed that a pension I had with an old job has been wound up. I can't transfer to my current pension because it has been time barred. I am too young to retire (sadly), my only choices are withdraw the funds or put it in to an annuity bond.

If I withdraw the money (just less than £400) I know 25% is tax free but it is subject to PAYE, which I believe is £92.82, so is the remainder taxable at 20%? I am trying to weigh up what is best to do as I am not sure about an annuity bond for this little amount.

Any help would be greatly appreciated.

greenglide

Do you not have the option to transfer to a Personal Pension or similar?

Is this a Defined Benefit (final pension scheme)? It sounds very much as if it is.

Ignore the "A" word, annuities are not always bad. What tems are they actually offering? Index linking?

Isla78

Hi,

Thanks for your response.

I have a pension with the NHS, but this is time barred and I do not have a personal pension.

It is a Phoenix Life SCP Centralised Executive Scheme (previously Scottish Provident Life Assurance) which has been wound up at the end of the year, if I don't do anything they will put it in to a deferred annuity bond, which will be switched to accumulation units. It doesn't say what terms they are offering.

I'm afraid pension are not my strong point, hence the advice seeking.