this pensions thing is soooo confusing!

debbiedoo

Hi. I wonder if any of you kind people can give me some advice.

Recently received my "wakeup" pack from my pension provider (Pheonix) and have £47,000 in the pot. I am only 56 and would like to take my 25% tax free lump sum and then buy an annuity with the remainder. I would also like to delay taking this pension for at least 5 years. Is this feasible and if so, how would I do this? All advice will be gratefully received as I really am at a total loss over this!

dunstonh

I am only 56 and would like to take my 25% tax free lump sum and then buy an annuity with the remainder.

why? Buying an annuity at age 56 is typically not a good idea.

I would also like to delay taking this pension for at least 5 years.

So you dont want to take the 25% and buy an annuity?

debbiedoo

I would like to take the 25% and pay off outstanding debts - the remainder would be used to buy an annuity as that seems the logical thing to do.

I don't seem to be given many options. Take it all as a lump sum - take 25% and buy an annuity - transfer all - take all as a small taxable lump sum - take pension savings over a period of time - take retirement benefits at a later date or a combination. I am so confused!

torbrex

An annuity from the remaining funds would not give you much of an income.
I went down the route of a drawdown, this gives me a larger monthly income but doesn't have any insurance connected with it as I have no dependants to worry about.

xylophone

Do you mean that you want to take 25% lump sum now but leave the rest invested until you are 61 when you will choose (might choose) an annuity?

Will Phoenix allow drawdown or will you need to transfer your pension elsewhere to get the flexibility you require?

https://www.pensionwise.gov.uk/ You could book an appointment?

debbiedoo

Pheonix don't allow drawdown so my options with them are very limited. I guess I would be better tranferring it elsewhere but have no idea where to start.

dunstonh

Your options are not limited. If your current provider doesnt offer an option you want then you transfer it to a new plan that does.

torbrex

debbiedoo wrote: »

Pheonix don't allow drawdown so my options with them are very limited. I guess I would be better tranferring it elsewhere but have no idea where to start.

Best place to start is face to face with a FA, let them know what you want and they will sort it out for you.
You will probably need one to arrange the transfer of funds away from your current provider anyway

SnowMan

debbiedoo wrote: »

Hi. I wonder if any of you kind people can give me some advice.

Recently received my "wakeup" pack from my pension provider (Pheonix) and have £47,000 in the pot. I am only 56 and would like to take my 25% tax free lump sum and then buy an annuity with the remainder. I would also like to delay taking this pension for at least 5 years. Is this feasible and if so, how would I do this? All advice will be gratefully received as I really am at a total loss over this!

As has already been said I would suggest you book yourself a free guidance session with Pension Wise either at a local Citizens Advice Bureau face to face or over the phone via TPAS.

https://www.pensionwise.gov.uk/appointments

xylophone

You might wish to obtain a new state pension statement to help with planning.

https://www.gov.uk/state-pension-statement

https://www.gov.uk/new-state-pension/overview

bigadaj

torbrex wrote: »

Best place to start is face to face with a FA, let them know what you want and they will sort it out for you.
You will probably need one to arrange the transfer of funds away from your current provider anyway

Need to be very careful with the language, that should be an ifa.

Also costs could be large percentage wise for the sums and values noted, a couple of thousand pounds possibly?

You can do this yourself but would need to have a basic level of knowledge and education, which some time and effort.