cash withdrawal of pension

dragonspark

hello to all
i was hoping someone could advise me regarding cash withdrawal of a pansion, i am sure everyone is aware that after april 6 2015 cash sums can be wihdrawn from pension plans, i have a pension with the pru, and have contacted them earlier on in the year, upon my 55 birthday, i asked if i could withdraw, after april, i did not recieve an answer so i sent another letter by registered post indicating that i was considering cash withdrawal, many weeks later i have just recieved a letter from them saying that they cannot comment until after april 6th, the government says we can withdraw, but i presume pension companies do not really want us to withdraw, can pension companies stop one from withdrawing, or change the terminology etc of a pension plan to stop one withdrawing, do i smell a rat here or is this normal, help please

PeacefulWaters

In the unlikely event of Pru not enabling withdrawals you will be able to transfer to a firm that does.

So there's no conspiracy.

I would suggest engaging your thinking fully before withdrawing in the near future. The big question being "what are you intending to live off in retirement?" ...

dunstonh

but i presume pension companies do not really want us to withdraw, can pension companies stop one from withdrawing, or change the terminology etc of a pension plan to stop one withdrawing, do i smell a rat here or is this normal,

Yes it is normal for a company not to give an answer about potential legislation and future changes that were not in statute yet or subject to change or where they have yet to publish their own provisions.

Pension companies dont sit there thinking how they can stop withdrawals being made. In fact, legislation stops them from doing that (requests for transfers out for example have a deadline to comply).

I havent seen anything from the Pru yet about legacy plans but I suspect it will be similar to other providers in that legacy plans (old ones) will not be allowed to utilise most or any of the new withdrawal methods other than perhaps part lump sum withdrawals. That is not an issue as you can always transfer to a plan that does allow your chosen method.

jamesd

You can withdraw 25% as a tax free lump sum before 6 April 2015 using capped income drawdown. Pru may not allow that so the solution would be to transfer to a place that does.

Alternatively, if the amount in the pension pot with the Pru is no more than £10,000 you can ask to withdraw it all under current rules as a small pot.

atush

Are you still working? If so why do you w ant to take your pension early before you need it?

Just because you CAN do something, does not mean you should.

dragonspark

many thanks for your replies, greatly appreciated.
i was 55 in january this year, and have a pension pot of £38,000, which i did have some plans for, therefore, i decided i would ask for a lump sum from my pension fund, i am aware that there are tax implications which, in my case would not be too great a problem.
i am self employed and envisage myself working until i drop really, cant ever see myself retiring, have too much of an overactive mind to retire, love what i do since 1991 anyway, dont really want to do anythng else.
So i was thinking of having the lot, however from looking at replies it doesnt look as if it would be as simple as i first thought

MEM62

dragonspark wrote: »

i am self employed and envisage myself working until i drop really, cant ever see myself retiring, have too much of an overactive mind to retire, love what i do since 1991 anyway, dont really want to do anythng else.

Your plan assumes that you will always be capable of working. What happens if ill-health prevents you from working? You always need a plan B and your pension savings will go some way to giving you that security.