Pension Freedom

jem16

SilverArrowUK wrote: »

seems they can try and sort yours out but me they dont seem to take any notice of mine:(

You could try following the link from the Aviva rep's post?

Coley2014

Can anyone help I'm REALLY a confused I'm 35 and have been medically retired I have been told I can take my pension by my financial advisor but he is unsure how my benefits would be affected if I draw down my pension he was thinking the best thing to do would be take three payments from my pension but was also unsure as to weather this money would be seen by the dwp as income or capital I hope this makes sense can anyone help ?..
My first time posting on here so hope it's in the right place

coyrls

Coley2014 wrote: »

Can anyone help I'm REALLY a confused I'm 35 and have been medically retired I have been told I can take my pension by my financial advisor but he is unsure how my benefits would be affected if I draw down my pension he was thinking the best thing to do would be take three payments from my pension but was also unsure as to weather this money would be seen by the dwp as income or capital I hope this makes sense can anyone help ?..
My first time posting on here so hope it's in the right place

Did you mean 35?

If you did mean 35, on what grounds did your advisor say that you could take your pension?

What is the status of your financial advisor? Are they an Independent Financial Advisor, or not? Why are they not able to do the necessary research to find the answer to their question?

jem16

Coley2014 wrote: »

Can anyone help I'm REALLY a confused I'm 35 and have been medically retired I have been told I can take my pension by my financial advisor

What kind of pension do you have? Have you been given an ill-health retiral from a Defined Benefit scheme?

jamesd

Coley2014 wrote: »

Can anyone help I'm REALLY a confused I'm 35 and have been medically retired I have been told I can take my pension by my financial advisor

Ill health pensions are permitted but many people may not know about them. The options would depend on the nature of each pension and its rules. Of great importance is whether it is a defined benefit workplace pension like final or average salary or not.

Coley2014 wrote: »

he was thinking the best thing to do would be take three payments from my pension but was also unsure as to weather this money would be seen by the dwp as income or capital I hope this makes sense can anyone help ?

DWP benefits and pension freedom describes the rules. Amounts are treated as lump sums if irregular, income if regular. You are not required by the DWP rules to take your pension and it could well be best for you to take only occasional lump sums to top up savings if it is not a defined benefit type of pension. This would minimise the effect on your benefits.

By adviser, do you mean a regulated financial adviser, regulated independent financial adviser or someone else?

carefullwithcash

I have a question about the handling of the 25% tax free component for pensions, in relation to multiple pension holdings. Is it allowed to take the 25% tax free component of my total pension savings through my SIPP holding only and leave other DB funds as they are? And if so do I need to declare what I am doing to HMRC or the SIPP supplier? Or does this just need to be done through an annual tax return? I’d rather do it this way than 25% of each individual pot.

My thinking is that because the defined benefit element is protected against inflation and has benefits for my wife in the event of my demise, then this is worth defending by not reducing it in any way. If instead I can take 25% of the total pension value by removing it all from the SIPP.

So for example if the total value of the pot was £800k split as follows;
DB pot 1 £500k
SIPP £200k
DB pot 2 £100k

The SIPP value could be withdrawn entirely tax free leaving the DB pots as they are, but with the benefit of an annually increasing value. I've not seen this scenario covered in any of the guides so wondered if it was allowed.

jem16

carefullwithcash wrote: »

I have a question about the handling of the 25% tax free component for pensions, in relation to multiple pension holdings. Is it allowed to take the 25% tax free component of my total pension savings through my SIPP holding only and leave other DB funds as they are?

Whilst not technically impossible, you will find that it is more or less impossible that you would be able to do so especially in the case of the DB pensions. The only occasions where this could happen tend to be those that have a link with an AVC pot that you can use to fund the tax-free lump sum.

Cloudyday

Well it seems to have worked I have opened an on line pension (NUTMEG) and got 20% tax back,paying monthly instalments. They are offering income draw down later in the year.
What are the rules on putting money in and taking it out, come when I wish to withdraw 25% or, and, take an income, and putting money back in the pension during the same year, is there any restriction?

dunstonh

Cloudyday wrote: »

Well it seems to have worked I have opened an on line pension (NUTMEG) and got 20% tax back,paying monthly instalments. They are offering income draw down later in the year.
What are the rules on putting money in and taking it out, come when I wish to withdraw 25% or, and, take an income, and putting money back in the pension during the same year, is there any restriction?

Yes there can be consequences of doing that and some providers have charges if you do that (which can negate the reasons for doing it).

If nutmeg cannot currently do it and dont have their charges published then its probably not a good idea to use them as they do not fit your needs.

lisajaynec

hi looking for some advice i am 57 years old i work self employed but very part time (10 hurs at most a week) as i have been ill and wont return full time. I have a pension pot of 85k which is 5 separate pensions all held with royal london) as i have been ill for a couple of years and i have run up 12k of credit card bills so i was thinking if i took the 25% tax free to pay off the cards but my question is do i have to invest the rest somewhere else or or can i just leave it where it is for royal london to invest on my behalf. also will taking this do anything to my state pension. I have phoned and i have enough qualifying years to get a full state pension. can anyone help please