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pension advice

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Hi,
I have recently been informed by scottish equitable that my penion with profits policy is due for drawing in january. but due to circumstances i will not be retiring then. They have gave me the option to defer with 2 options1/ putting money in there cash fund 2/ putting it in a unit linked fund which i am temped to do as it is not as large amout as I was expecting. I know I should get in touch with a financial advisor but does anyone know if I put it in a unit linked fund how long does it have to stay in, can it be a fixed term or a variable term and what charges would apply i would appreciate any advice.

Cheers Rabbit

Comments

  • dunstonh
    dunstonh Posts: 119,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is it a section 32 buy out bond, Section 226 retirement annuity contract or a personal pension?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • it is a personal pension
    rabbit
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Normally if you defer your pension, you can choose how long to defer it for - rolling it over every year may be a good idea.

    As the pension is in a Withprofit fund now, it's probably wise to move it out now that it is maturing, as you might be subject to penalties otherwise.

    The new maturity date you choose isn't relevant to what the money is invested in.

    You should ask them about the charges and also about the fund choices.A selection of funds may be better than just one.

    BTW it is not necessary to retire to draw money from a pension fund.Many people find it useful to take the 25% tax free cash out to reinvest eleswhere and leave the rest to grow until they need the income.If you wanted to do that, you would need to move the money to "income drawdown", typically by transferring to a SIPP.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 119,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Scot Eq have an awful lot of plans with guaranteed annuity rates. You need to get this verified and what ages and rates and methods of taking the money are available.

    Their GARs at 65 are typically in double digits whereas open market is closer to 7% for men.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Yes indeed, check for a GAR.If there is one, it may mean you should take the money in January or you will lose it.
    Trying to keep it simple...;)
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