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Pension connundrum
rorysdad
Posts: 161 Forumite
Hi all
I have a pension which comes as a result of contracting out of SERPS many years ago.
I am 55 later this year and can then draw 25% tax free.
The company that currently holds the pension has said I cannot draw 25% at the relevant time without having taken advice from an IFA. Pension Wise tell me that an IFA may charge £1,000-£10,000 to give advice - so I am not keen on that idea!
However, the company that holds the pension has said that I can move the pension to Hargreaves Lansdown - without having IFA advice and without any financial penalty.
As I understand it I don't have to move the whole pension to HL?
So, the question is (using fictitious figures here) - the pension is currently valued at £100,000. If, for instance I move £20,000 to HL to be held in a SIPP as CASH - and leave the rest (£80,000) with the company currently holding it (and bearing in mind that they have said I can't take the 25% tax free from them without financial advice)- where it will hopefully continue to grow - does that mean that I can only take 25% of the £20,000 held at HL when I am 55 - ie: £5,000?
Can I move the pension to HL in dribs and drabs - ie: in the future move whatever amounts I like over to the SIPP?
Hope the above makes sense.
RD
I have a pension which comes as a result of contracting out of SERPS many years ago.
I am 55 later this year and can then draw 25% tax free.
The company that currently holds the pension has said I cannot draw 25% at the relevant time without having taken advice from an IFA. Pension Wise tell me that an IFA may charge £1,000-£10,000 to give advice - so I am not keen on that idea!
However, the company that holds the pension has said that I can move the pension to Hargreaves Lansdown - without having IFA advice and without any financial penalty.
As I understand it I don't have to move the whole pension to HL?
So, the question is (using fictitious figures here) - the pension is currently valued at £100,000. If, for instance I move £20,000 to HL to be held in a SIPP as CASH - and leave the rest (£80,000) with the company currently holding it (and bearing in mind that they have said I can't take the 25% tax free from them without financial advice)- where it will hopefully continue to grow - does that mean that I can only take 25% of the £20,000 held at HL when I am 55 - ie: £5,000?
Can I move the pension to HL in dribs and drabs - ie: in the future move whatever amounts I like over to the SIPP?
Hope the above makes sense.
RD
0
Comments
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What advantages might you lose by transferring or drawing down? Any?Free the dunston one next time too.0
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None as far as I am aware.0
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is this the same pension you asked about back in February?
https://forums.moneysavingexpert.com/discussion/5415500
Is it perhaps a Defined Benefit (final salary related) pension?The questions that get the best answers are the questions that give most detail....0 -
Yes - but it is a pension that comes as a result of contracting out of SERPS.
RD0 -
Yes - but it is a pension that comes as a result of contracting out of SERPS.
RD
That's not relevant.
Why do you wish to transfer it gradually ? Why not all in one go? It's quite likely with a DB pension they won't be keen on transferring a part on it but you can ask the administrators.0 -
I don't understand why you do not move the whole pension to a SIPP and take the 25% - you could leave the rest invested.
What is your pension invested in at the moment? What is its value at the moment?0
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