Help with my mums pension?!

s0095063

Hi there,

I was wondering if anyone could possibly give me a little bit of advice about my mums pension.

She has a pension with her previous employer which has £50,000 approx in it. My mum really wants to cash the pension in as she has a lot of debt and is looking to clear her feet a little bit. She has another pension with her current employer, and still has another 12 years to pay into it.

I am a bit concerned for her as i'm not sure if she is fully aware of the consequences and i'm pretty sure she doesn't know the best way to go about cashing her pension in.

I know there is not a lot of info regarding her pension to go on, but if anyone has any good advice/tips where to start/how to go about it etc, i would be very grateful.

Thankyou in advance.

Ross

Andy_L

If she's under 50 (raising to 55 sometime soonish) she can't get at the money.

EdInvestor

If she's over 50 she can extract 25% of the money in tax free cash.The rest can either be left to grow until she needs it later, or she can leave it invested and take an income from it. This is called "income drawdown" .

You normally do it by moving your pension to a SIPP.Here are a couple of low cost SIPP providers' websites, which have more information on them:

https://www.sippdeal.co.uk

https://www.h-l.co.uk

s0095063

Hi and thanks for all your help, it's very much appreciated. :j

My mum is 51 (52 in september), she had a telephone convesation with an independent financial advisor yesterday who has taken all her details and is going to get back to her next week.

In the mean time i will check the sites you have suggested and try and read up a bit so i can help her!

Thanks again.