DMP and the new pension rules

ryedweller

Thank you for this. Will get some advice.

Brightspark87

Hi as an IFA (this isnt advice) I wanted to add I have had many clients in a similar situation where this is the case (money in pensions).

you need to see an advisor. Most of us dont charge for the first meeting and at least that gives you an idea of where you are and another option.

good luck! x

National_Debtline

I would certainly expect fee-charging debt management companies to be very quick to ask about access to pension funds following the recent changes. Any extra funds you can release represent potential extra fees for them.


OP and other customers of such companies need to be aware of this and get suitable advice from sources like an IFA as Brightspark suggests. It's also worth contacting the Pensions Advisory Service on 0300 123 1047 as a starting point.


Dennis
@natdebtline

dancingfairy

Instead of a lump sum IVA you could look at doing a full and final settlement (National debtline have a factsheet on their website about this I believe). I'm not saying it's better or worse but it's an alternative to be explored.
My gut reaction is that pensions shouldn't be taken to pay debts but I'm not the one living with the debts and you'll need to settle them some how.
The one thing that concerns me is what you will live off as this money needs to last you. It's definitely worth getting proper advice as it's a huge chunk of money you could potentially access and it will be worth getting proper advice. Don't forget that there may be tax to pay on income released from pensions so make sure you understand the implications for this as well (I don't know the ins and outs but believe it has caught people out).
Regards
df

DorisTrousers

It is indeed correct that full and final settlements can be negotiated without IVA, as I mentioned previously, but it is also true that statistically you are far likelier to pay more money to an informal settlement, which sort of defeats the object of the exercise. Each to his own though.

DorisTrousers

National_Debtline wrote: »

I would certainly expect fee-charging debt management companies to be very quick to ask about access to pension funds following the recent changes. Any extra funds you can release represent potential extra fees for them.


OP and other customers of such companies need to be aware of this and get suitable advice from sources like an IFA as Brightspark suggests. It's also worth contacting the Pensions Advisory Service on 0300 123 1047 as a starting point.


Dennis
@natdebtline

I hope Dennis doesn't mean that non fee payers will not be asking this question? Not to do so could certainly be viewed as a dereliction of duty to clients.