Pension advice needed

Eloquence

I recently contacted my Pension company (Formerly Scottish Life but now Royal London) about my Pension. I signed up for the Talisman Personal Pension Plan back in 1991 and my retirement date was last year but I took a cash lump sum of 25% in 2012. I am currently being paid a monthly Pension amount. I contacted them recently about withdrawing my entire remaining fund as a cash lump sum but was told that I cannot do so. Is that right? The guy told me that the money is "in a different Pension account which doesn't allow you to withdraw any money from it". Since I was confused, I asked him to explain but he just reiterated that I can't withdraw any money from it.

Does anyone know what this is all about? I was under the impression that you can withdraw any amount of money, including the full value of the fund, at any time under the new rules in force since April 2015?

atush

AS far as i can see, you spent your pension pot on a annuity- a sum paid to you each year of your life?

The new rules are for pension pots intact as of April this year.

Your pot was spent in 2012? So there is no pension of yours to come under these new rules.

kidmugsy

If you bought an annuity, you can't take to your "pot" because you no longer have one - you spent it on the annuity.

If, by contrast, you are currently doing a monthly drawdown, then you ought to be able to transfer your pot to another provider which will allow you to withdraw a (taxable) lump.

So you need to look at your paperwork to see just what you did in 2012.

dunstonh

I signed up for the Talisman Personal Pension Plan back in 1991 and my retirement date was last year but I took a cash lump sum of 25% in 2012.

You signed up for the Talisman pension in 1991 but you got rid of it in 2012 to buy an annuity. You no longer have a pension.

I contacted them recently about withdrawing my entire remaining fund as a cash lump sum but was told that I cannot do so. Is that right?

it is right. You used the fund in 2012 to buy an annuity (after taking your 25%).

I was under the impression that you can withdraw any amount of money, including the full value of the fund, at any time under the new rules in force since April 2015?

That is correct. However, you no longer have a pension fund. That has gone forever. In its place you have a guaranteed income for life (A Talisman plan from 1991 may well have had guaranteed annuity rates). So, the changes are not for you.

xylophone

What were the terms and conditions of the pension arrangement?
Did you buy an annuity with the balance of your fund after taking the PCLS?

Eloquence

Thank you for the replies so far.

1. I've heard that it's possible to unwind the Annuity contract, is that right?
2. Someone also mentioned that there are government plans to allow people to cash in their Annuities from next year. Is that correct?

xylophone

https://www.gov.uk/government/news/pension-freedoms-to-be-extended-to-people-with-annuities

Eloquence

Thank you.

dunstonh

1. I've heard that it's possible to unwind the Annuity contract, is that right?

The rules do allow it but its very rare for any provider to offer it.

2. Someone also mentioned that there are government plans to allow people to cash in their Annuities from next year. Is that correct?

There are no rules planned to allow annuities to be cashed in. However, there is the possibility of third party selling of annuities
but it is unlikely to be a good option for most people.

kidmugsy

dunstonh wrote: »

However, there is the possibility of third party selling of annuities but it is unlikely to be a good option for most people.

Even Mr Osborne, the Great Pension Liberator, has said that he thinks it will suit few people.