Can you have an annuity at 63 with a personal pension?

jem16

buel10 wrote: »

One more thing, he has mentioned tear down as an option IF he did transfer and withdrew his pension. Would this be viable?
Oh and he is 55, apologies.

Drawdown covered by xylophone.

Much more importantly - is his final salary pension a public sector one or not?

atush

You know, there is nothign stopping him taking out a DC pension alongside his FS one. Paying into it, then taking that pension 25% TF and 75% taxed.

in fact we often recommend this to those who want to retire early w/o reducing a FS pension by taking it early

jamesd

buel10 wrote: »

If I may, the only other question he asks is if he does transfer his pension, will he be taxed on this? If and when he then withdraws this, is he correct in thinking that he will get a 25% tax free lump sum? ... He is 54.

Yes. His big difficulty will be getting any IFA to sign off on the transfer and the receiving scheme is going to insist on that before they take the transfer.

If he's in the public sector he has until 5 April 2015 to get the transfer paperwork with his employer, after that transfers from those that are unfunded will be banned by law.

However, there are some cases where a transfer from a final salary pension can be a good idea. Most of those revolve around ill health and reduced life expectancy but today interest rate are so low that some defined benefit pensions offer transfer values that are interestingly high. Most don't, but there are those few. If he's interested in initial thoughts on whether he's in one of the few where it is a good deal it'd be necessary to supply the transfer value, the normal retirement age, the benefits - amount, spousal pension percentage at least - and intended use of any lump sum.

xylophone

If he's in the public sector he has until 5 April 2015 to get the transfer paperwork with his employer, after that transfers from those will be banned by law.

Transfers out of unfunded public sector schemes will be banned after 6 April - of the seven main PS Schemes (Police, Fire, Civil Service, Teachers, NHS, Army and Local Govt, only the LGPS is funded.

jamesd

Thanks, I've added that funding clarification to my own post as well.

buel10

Hi all.

Apologies for the delay - No, his final salary pension is not a public sector one.

Your words of advice have been excellent and have certainly educated my friend.