pension release

yorkshireOAP

I have a pension fund with Guardian Financial, from a section 32 buy out, with a GMP element. The fund value is £40000. I would like to release 25% under new pension regulations. They say I cannot due to the GMP.
What arguemnts can I use to make them release funds?
I know I can transfer to another policy, but I would lose too much income at retirement date. I am 63.75 years old. I am likely to continue working beyond 65. I have started drawing an annuity from another company (fund £70000) of £246/month after tax. I have yet to finish paying a large mortgage, so funds are tight. I need to pay off a creit card and relpace my 14 year old banger, hence the reaseon to release funds.

jem16

yorkshireboy wrote: »

I have a pension fund with Guardian Financial, from a section 32 buy out, with a GMP element. The fund value is £40000. I would like to release 25% under new pension regulations. They say I cannot due to the GMP.
What arguemnts can I use to make them release funds?

Absolutely none.

I know I can transfer to another policy, but I would lose too much income at retirement date.

That's your only choice though if you want to release funds from it.

kidmugsy

yorkshireboy wrote: »

I have started drawing an annuity from another company (fund £70000) of £246/month after tax.

Good grief, why?

yorkshireOAP

I assume why start drawing the pension? After a period of redundancy, I started a job with a much lower income and was scarcily enough to pay bills etc. So I accessed the pension, I am glad I did.

jamesd

Is it too late to cancel the annuity you purchased? Do you know that if you reach state pension age from 6 April 2016 you can instead get a 5.8% inflation-linked increase in your state pension for each year that you defer claiming it? Or 10.4% if before that date.

Guardian Financial are correct that their obligation to pay GMP allows them to limit or eliminate the tax free lump sum claim. One of your alternatives is to transfer, take the tax free lump sum, then defer your state pension. That'll probably pay at a higher rate than the GMP anyway, though do check.

Annuity vendors aren't required to tell you that you can usually get more money from deferring the state pension than buying an annuity.

So far as the mortgage goes, have you tried asking for the term to be increased to ease your financial position?

yorkshireOAP

Thanks jamesd. It seems we are on the same wavelength, I have been cosidering the very points on deferring the state pension. My financial advisor is recommending in the strongest possible terms, I do NOT touch the Guardian pension as there is too much to lose.

Thanks for your valuable input.

atush

yorkshireboy wrote: »

I assume why start drawing the pension? After a period of redundancy, I started a job with a much lower income and was scarcily enough to pay bills etc. So I accessed the pension, I am glad I did.

We were talking about WHY you started an annuity instead of DD?

Please leave your second pension alone if you dont want to work til you drop?

kidmugsy

yorkshireboy wrote: »

I assume why start drawing the pension? After a period of redundancy, I started a job with a much lower income and was scarcily enough to pay bills etc. So I accessed the pension, I am glad I did.

I mean specifically, why an annuity rather than drawdown?