How do I get my pension in cash

d8veh

I have two private pension plans worth about £120,000 together.

I'm 64 years old and already retired. I get my income from property investments - something like £15000 p.a. before tax. I don't have any debts or major expenses, so I can live comfortably on what I have already.

I was thinking about taking my pension out in cash, something like 25% now, which is tax free, plus say £20,000, which I'd pay tax on at the basic rate, then £20000 a year for 4 years.

How can I arrange that myself? I asked a financial adviser, but he wanted to charge 3% (£3600), which seems rather a lot if it's just a case of filling in a few forms.

Thanks in advance for your help.

EdGasket

You just ask your pension provider to do it. If they won't, transfer the pension to a SIPP provider where you are in control. No need for an IFA though some 'old style' pension providers might still insist on it.

atush

If these are DC pensions, without and valuable guarantees- call them and ask about Drawdown.

if they dont do it, transfer to a sipp as suggested who will.

I suggest, if you dont have a pressing need for the money, to leave the money int he pension and draw it down more slowly.

As you would be taking it out of a tax free environment, into a taxed environment. And from a place where it can be inherited tax free, to part of your estate if IHT is a worry for you.

At least stick it into a S&S Isa once out? At least you wont then pay tax on any income you take.

xylophone

I am assuming that this is a standard DC pension with no guaranteed/safeguarded benefits?

If your current provider does not facilitate drawdown, you will need to transfer out.

Example

http://www.hl.co.uk/pensions/sipp

dunstonh

I asked a financial adviser, but he wanted to charge 3% (£3600), which seems rather a lot if it's just a case of filling in a few forms.

Can you let me know where you have seen that it is just a case of filling in a few forms? It is taking me the best part of a day or two. So, I must be doing something wrong.

Dark_Sunday

dunstonh wrote: »

Can you let me know where you have seen that it is just a case of filling in a few forms? It is taking me the best part of a day or two. So, I must be doing something wrong.

So an IFA wants to charge £3,600 for the best part of a day or twos work ?

dunstonh

Dark_Sunday wrote: »

So an IFA wants to charge £3,600 for the best part of a day or twos work ?

And your point is? (other than perhaps not understanding that turnover is not profit)

Malthusian

Dark_Sunday wrote: »

So an IFA wants to charge £3,600 for the best part of a day or twos work ?

No. A day or twos' work, lifetime liability if the advice goes wrong (or the client goes wrong but blames the adviser), ongoing research and updating tax and legislation knowledge, regulatory fees, Financial Services Compensation Scheme fees, compliance, support staff, premises, depreciation and tax. Plus enough profit to make them get out of bed in the morning, and not pack it in and go work for St James's Place.

None of that is, of course, any concern of D8veh's. If you don't value the advice then you don't have to pay for it. (We needn't go into safeguarded rights as the OP hasn't mentioned them.)

Amolad

” And your point is? (other than perhaps not understanding that turnover is not profit)

Wherever the £3,600 goes in the IFA's accounts 100% of it comes out of the client's funds

dunstonh

Amolad wrote: »

” And your point is? (other than perhaps not understanding that turnover is not profit)

Wherever the £3,600 goes in the IFA's accounts 100% of it comes out of the client's funds

And what is the problem with that?

[Deleted User]

Bearing in mind the amount involved, I would be inclined to ask for it in £50 notes I think ......