McKechnie Pension Trust Limited - Pension PLan

Chime26

greenglide wrote: »

That depends on what you want them to do.

If you want an IFA to even consider transfer of a Defined Benefit pension to a Defined Contribution one it is not going to be cheap.

Does he / you feel competent to invest this sum of money over many years rather than accept £13,613 index linked for the rest of his life?

He basically thinks , who know what's going to happen in the next 10 - 12 years... because it would take around 10- 12 years (depending on inflation) to break even if he didn't take the tax free lump some...
So he feels he should take the tax free lump sum.
As he is divorce, if something was to happen to him at least his family end up getting something instead of loosing it all because the pension cannot be passed down to his daughters.

xylophone

Your father needs to sit down with a calculator and a sheet of paper and work out his options.

He needs to consider his tax position.

He needs to consider whether deferring state pension might be to his benefit.

He is considering working after State Pension Age - he is aware that at this point he will no longer pay National Insurance?

https://www.gov.uk/tax-national-insurance-after-state-pension-age

https://www.pensionwise.gov.uk/ might be worth a look.