this pensions thing is soooo confusing!

atush

I gotta say, 47K isn't a huge pot for retirement and your income will be low.

I'd cut my spending to the bone, pay off debt that way, and actually pay more into a pension instead of wondering how to take it out.

xylophone

I gotta say, 47K isn't a huge pot for retirement and your income will be low.

The OP may still be working and have occupational pension provision in addition to this private pension?

If she takes the lump sum and uses it to pay down debt, perhaps she could contribute the money saved from interest payments to continue to contribute to this pension?

System

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.

Phoenix do allow drawdowns my hubby has just received information on his pension with them .They do however charge £500 to do so.

dunstonh

Phoenix do allow drawdowns my hubby has just received information on his pension with them .They do however charge £500 to do so.

Can you name the plan that does income drawdown and under which legacy company? (old company name)

atush

xylophone wrote: »

The OP may still be working and have occupational pension provision in addition to this private pension?

If she takes the lump sum and uses it to pay down debt, perhaps she could contribute the money saved from interest payments to continue to contribute to this pension?

Both true, but i thought they would have said if they had other pensions?

I would look to replace at least what was used to pay off the debt.

kidmugsy

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

I've transferred several pensions without any need for an FA.

xylophone

I've transferred several pensions without any need for an FA.

And the OP could choose the DIY route, transferring to a SIPP for example, or to a personal pension with a provider facilitating drawdown.

However, she seems to wish to take only the 25% - she is not confident about choosing investments for the balance?

agarnett

xylophone wrote: »

However, she seems to wish to take only the 25% - she is not confident about choosing investments for the balance?

I read between the OP's lines that she may simply be repeating the limited option Phoenix may have presented i.e. you can take 25% but if you do then you'll have to buy an annuity with the balance. I had something similar put to me by one of my providers on a take it or leave it basis.

The answer of course is to transfer out if it is essential to get hands on the 25% to pay urgent debts, but if this is a Phoenix plan, there may be hidden benefits lost though transferring out or 'crystallising' it (is that the right word i.e. taking the 25% tax free and starting an annuity with the balance?).

OP, if you could tell readers exactly which named Phoenix plan you hold, they may be able to offer more specific angles on your options and/or the pitfalls of touching it too soon.

debbiedoo

thank you for all your replies

The pension in question was transferred over 20 years ago from my then employer when I became redundant - I have not paid anything into this pot since then.
I am indeed still working and, as I work in education, do not have to retire at 65. I am, and have been for many years, paying into my works pension which is a council pension.

I looked at SIPPs but am not confident about investing money myself.

My current circumstances are this; been married for 30 years but hubby left me last year. I need this 25% to sort out the house and pay off some debts. The pension plan I have with Pheonix is called

Personal Pension Transfer In, Non Protected Rights Plan

xylophone

You are in the LGPS? Presumably your SRA is 65 (the age when you can retire without actuarial reduction) but as this
http://www.lgps.org.uk/lge/core/page.do?pageId=102174explains, you do not have to take your benefits at SRA.

You will become eligible for State pension in the new scheme and can obtain a statement as above.

It seems to me that the fact that you have the security of the DB LGPS permits you to be fairly relaxed about taking your lump sum from the Phoenix pension?