GMP transfer to drawdown

tease

Hi I hope someone can help

My wife has a small pension 20K in a GMP pot and wishes to transfer it to a drawdown pension, does anyone know of any companies that will accept these transfers?

FYI she is 55 in May

Many thanks

Tease

JuneAB

Is it a section 32?

Depending on the value of GMP and size of fund the scheme may not allow this, if they do you will need to take financial advice.

Out of interest, why do you wish to do this?

woolly_wombat

Is 20K fair value?

How much would she receive pa from May 2021 if she didn't transfer out?

tease

it would be worth about 2000 PA, it a section 32. Her total pensions are below 30k so are able to moved - we have spoken to the pension company and we can move it to a drawdown.
The reason we want to move it is that we have other investments, and i have 2 much larger pensions. We are also moving to New Zealand in September so the 20K would ease the landing

woolly_wombat

tease wrote: »

it would be worth about 2000 PA, it a section 32.

Looking at the HL best annuity rates table:
https://www.hl.co.uk/pensions/annuities/annuity-best-buy-rates

Single life, level, no guarantee at age 60, 100k would purchase £4,751, so to purchase £2000 pa would require a pot of of just over 42K.

20K vs 42K. Hmm.

mania112

tease wrote: »

it would be worth about 2000 PA, it a section 32. Her total pensions are below 30k so are able to moved - we have spoken to the pension company and we can move it to a drawdown.
The reason we want to move it is that we have other investments, and i have 2 much larger pensions. We are also moving to New Zealand in September so the 20K would ease the landing

Sounds sensible. Just beware that if it's all drawn out 75% of it will be taxed at your top rate of tax (although if you're moving away you could be a nil-rate taxpayer after April?)

tease

Referring to my original query, does anyone know of any companies that will accept GMP transfers to drawdown?

dunstonh

tease wrote: »

Referring to my original query, does anyone know of any companies that will accept GMP transfers to drawdown?

All of them. Assuming she is willing to give up the GMP.