£2880>£3600

MoneySavingUser

Mrs_Mum99 wrote: »

I have a Cavendish Online Fundsupermarket Pension into which I have paid 2 lots of £2880. I was hoping to be able to take the money out but apparently I am unable to. Can anyone tell me if I can reregister this with someone else so that I can take it out or what other options there might be? When I took it out I thought that it would be a few years before I needed access to it.
Thanks for any help.

From the website

When will I be able to take out my pension?


For the time being it is not possible for clients of the Cavendish Online FundSupermarket Pension to take withdrawals from their pension by going into drawdown. This is because we are not permitted to provide our clients with advice relating to drawdown.

If you wish to drawdown from your pension you will need to transfer or re-register your pension away from the Cavendish Online FundSupermarket Pension to another provider who can provide drawdown. We do expect to be able to provide our clients with access to drawdown at some time in the future.

So you need to transfer out to someone who does allow it. Also from the website:

What are the charges and when are they taken?


There are 3 charges in total:

• Fund Manager Charge (taken out of the daily price of the fund)
  (between 0.07% and 1.25% but typically 0.75%*).

• Platform charge 0.25% (taken monthly in arrears)

• Cavendish Online Fee 0.05% (taken monthly in arrears)

*over 90% of funds have a Fund Manager Charge of 0.75% or less
There are NO initial charges, NO switching fees and NO exit fees.

So seems there is no charge to transfer out.

https://www.cavendishonline.co.uk/pensions/faqs/

Mrs_Mum99

Any ideas which companies would accept a re-registration?

MoneySavingUser

Mrs_Mum99 wrote: »

Any ideas which companies would accept a re-registration?

I think you can reregister to companies that use fidelity as their platform provider. Not sure who these are though.

You can transfer out to any provider which allows drawdown though.

Ganga

We are trying to close my wifes pension with Virgin as the taxation upload has been applied.Does she have to wait till 5th april 2017 to open another one to gain the tax gain?

Regards Ganga

MoneySavingUser

Ganga wrote: »

We are trying to close my wifes pension with Virgin as the taxation upload has been applied.Does she have to wait till 5th april 2017 to open another one to gain the tax gain?

Regards Ganga

Yes you only get one lot of the £720 per tax year!

(Assuming she has no income)

Ganga

Thanks for the repy MoneySavingUser,yes she is retired now and only recieves her state pension and her Boots the Chemist Pension,both of which are under the £11,000 tax breakpoint so she will have to claim the tax back on the 75% portion which will be taxed at source i pressume.

p00hsticks

Ganga wrote: »

Thanks for the repy MoneySavingUser,yes she is retired now and only recieves her state pension and her Boots the Chemist Pension,both of which are under the £11,000 tax breakpoint

I presume that you mean that taken together they total less than £11,000, not just that each individually is under this amount

uk1

Hi all,

It has taken a touch longer than expected, but my wife has finally received the income tax uplift and my wife has called Virgin to close the account and receive the total proceeds of around £3650. They said they would need to send her forms but in fact she has been sent a set of the options Virgin offer rather than forms to complete and she has to choose between two which to me seem identical - and then telephone.

I'd appreciate guidance on which she should choose as a tax payer with free taxable income allowance left making 100% of the proceeds tax free.

(a) Lump sum withdrawal one single uncrystalised funds pension lump sum. 25% will be tax free the rest will be taxed but she will presumably receive a refund at the end of the year or

(b) Funds less that £10,000 - small pot lump sum with the same tax treatment as (a).

They seem the same to me but perhaps I am missing something? Is one easier to enter into her annual tax return?

Thanks in advance.

Jeff

jamesd

The small pot lump sum rule allows taking of the pot without triggering a reduction in the money purchase annual allowance for pension contributions from £40k a year to £10k a year. Available for up to three pots of this type per person's lifetime, up to £10k per pot and the amount taken must be all of the money in the pot. You can use transfers to combine pots to get close to but not over 10k if desired.

If she has already taken any taxable money from any money purchase pension - meaning things like personal pensions and the SIPP version or a workplace money purchase pension of some sort - then there is no difference between the two because she already has the lower 10k limit. One exception to this is if she had a pension that she put into capped drawdown under the rules that were in place before 6 April 2015 and has not taken more than the GAD limit amount out, which is allowed without triggering the reduction.

Waiting until closer to 10k then using the small pots rule is something that a person who is still working and may make contributions above 10k in a year might want to do.

uk1

Thanks ... for the removal of doubt on my part ... she isn't working and will not be working and is in receipt of several small pensions but has contributed to no other pension this year and in future will only contribute to pensions of this type and for the purpose of the tax snatch back in the future.

So is my understanding correct that she can simply take it as the <£10,000 pot with no other repercussions?

Thanks again.

Jeff