Defined Benefit Transfer Values

ArchaeoNeo

Hi to all, it has been a while since my original post but I would like to share my continuing journey with you and much has happened since January.
Firstly I contacted a good IFA and discussed the DB transfer - things were put in motion and he is still waiting to hear from Towers Watson.
I also contacted Towers Watson to ask a few questions of my own regarding the DC pot and whether my DB CETV might be transferred into it, if indeed that were the best option - it can't. The story would have ended there but for the extra information supplied, namely I could have taken retirement at 50 and would I like a quotation! I said OK.
In short I received a pack from TOMAS thicker than War and Peace stating a fund value of £133k and all the various options therein (25% tax-free, all manner of annuity scenarios, drawdown, etc. - great reading).
Now I have a question for you good people, does the following stack up as a reasonable plan or am I completely mad?
I want to buy a house with my partner and young family as we have rented for nearly 10 years and have nothing to show for it. Our landlord is selling the property and has given us notice. We have about £100k to put down as a deposit on a £250k new-build property. I believe we would be eligible for a Help to Buy equity loan of 20% (£50k) leaving £100k to finance. What I would like to do is take my DC pot as cash to provide the balance of the property and be mortgage-free. I have made a very rough calculation on the tax I would have to pay and believe I would end up with just over £100k.
I have only taken temporary work this last year as I was working on my PhD, I have now put this on hold and been offered a job with the Civil Service, as has my partner - we both start in April. My partner does have 14 hours/week part-time work but piles most of what she earns into her pension. The point here is that I don't believe we would be considered for a mortgage for at least 6 months, hence the desire to use my DC pot.
Please could I have your thoughts? Particularly if there is a cunning plan to use my DC cash and not get hammered for £30k+ tax - I have heard of businesses being invested in pensions, presumably as a tax-efficient mechanism? Is it possible to do this with a property?
Apologies if this crosses into the realms of house buying but it is ostensibly a pension question.
Thanks for reading.

xylophone

I have to work 4 more years to get the full state pension in 2037 but I know I was opted out of SERPS for most of the time I spent with Barclays so the £155 is unlikely.

I am not sure that you quite understand the new system.

What is your "starting amount" as at 6/4/16?

Has your wife also obtained a new state pension statement?

xylophone

What I would like to do is take my DC pot as cash

You are able to access the Afterwork deferred pension before age 55?

If you can and do, are you aware of how much you will pay in tax?

http://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/

ArchaeoNeo

My SP is £139.31/week, forecast of £155.65/week if I contribute another 4 years before 2031.
My partner's is almost identical even though she is 6 years younger.

Yes I could have taken my Afterwork pension any time from 50; I'm aware I will pay tax on 75% but am short on options in order to buy a house.

xylophone

My SP is £139.31/week, forecast of £155.65/week if I contribute another 4 years before 2031.

Which presumably you will do......

ArchaeoNeo

Yes, although on my Gateway account it mentions a COPE amount of £31.11 as I was contracted out. Will this not be deducted from my SP?

kidmugsy

ArchaeoNeo wrote: »

Yes I could have taken my Afterwork pension any time from 50; I'm aware I will pay tax on 75% but am short on options in order to buy a house.

You are really prepared to pay 40% income tax just to avoid taking on a mortgage loan? When interest rates are at their lowest in history? Good grief: such folly.

All you need to do is take out the £33k TFLS, transfer the investments inside the fund from equities or whatever to cash, and drawdown at a rate that means you need never pay more than 20% tax. A mortgage broker will find you a loan to suit your circs. Now go and lie down until your entirely fatuous idea has departed your brain.

xylophone

Yes, although on my Gateway account it mentions a COPE amount of £31.11 as I was contracted out. Will this not be deducted from my SP?

Your "starting amount" has already had a deduction for your contracted out years applied to it.

ArchaeoNeo

OK Kidmugsy, so that's a 'no' then!?
I'll arrange to see a broker and see what our options are.