Old Mutual Wealth "collective Retirement Account"

wroughtironron

I took out a private pension plan 20 years ago with Skandia (now Old Mutual Wealth), paying a gross £70 pm. It has risen in value to approx £42k now, and I still make the monthly payments.

I'm now 60 (married), and I retired last april, taking my four company pensions, which equate to around £16k per annum. I still have a £50k mortgage, which I'm paying off at £500 per month off the capital. I have no other loans.

Because of the mortgage situation, I've decided to go back to work this month, and increase my mortgage payments accordingly.

Today, I received a pension statement from Old Mutual Wealth, advising me that my current pension plan doesn't offer me the full range of of the new pension withdrawal options, and that my options would be :
1) Take a tax-free cash payment of 25% and buy a lifetime annuity with a provider of my choice (I don't want to buy an annuity, and have sufficient existing pensions)
2)Transfer to a registered scheme which gives the full range of options - they operate a "Collective Retirement Account" which I could transfer to.
3) Withdraw the entire pension, and pay the required tax on it.

My plan was to eventually (say in 3 or 4 years), on my permanent retirement, withdraw the 25% tax free sum , and then go into flexible drawdown, taking monies as and when I needed it.

Do you think I should transfer now to this Collective Retirement Account, leave things as they are until I finally retire, or transfer this account to another provider? I do want to keep paying into it as long as possible, to build up the value.

Thanks for reading.

colesy

wroughtironron wrote: »

My plan was to eventually (say in 3 or 4 years), on my permanent retirement, withdraw the 25% tax free sum , and then go into flexible drawdown, taking monies as and when I needed it.

Old Mutual Wealth's Collective Retirement Account will let you do this.