Advice on cashing in 2 smaller pensions please.

AVENUE

xylophone wrote: »

Is there any mention of a Guaranteed Minimum Pension?

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

I cant see any mention of one on the statement that they send out. A brochure they sent mentioned if a GMP is available it will be classed as a "defined benefit" & I cant see that mentioned.


For the short time I was in it I do know I was contracted out of serps & that went into this pension. The way they have worked the figures out shows two separate amounts. One which is around £2600 & called "your former protected rights fund value" & a smaller one of around £300 which is called "your non protected rights fund". These both have their own policy number which are just a couple of numbers apart from one another?


Best Regards
Avenue

xylophone

Protected Rights are now just ordinary pension rights.

With regard to the Aviva policy, if this a an RAC type contract it could be important to establish the GAR position.

http://www.kirkrice.co.uk/blog/retirement-annuity-contract-pension-why-has-the-tax-free-lump-sum-reduced/

AVENUE

xylophone wrote: »

Protected Rights are now just ordinary pension rights.

With regard to the Aviva policy, if this a an RAC type contract it could be important to establish the GAR position.

http://www.kirkrice.co.uk/blog/retirement-annuity-contract-pension-why-has-the-tax-free-lump-sum-reduced/

I don't think it is an RAC type policy as I've always thought that I'd be taking about 25% tax free cash sum, but i'll double check on that, I'm waiting for a statement back from them at anytime.


Also, although I realise there will be a lot of variables dependent on everyone's circumstances. Is there an easy way to draw up a rough estimate/forecast for an annual pension income from a total pension pot of £15,000 from which 25% tax free cash has been taken, assuming I start taking these payments from the age of 60 in August?


Many Thanks.


Avenue

xylophone

Do you mean that you would transfer both to a SIPP, take the PCLS, invest the remaining £11250 in an income fund and take the natural yield?

Or do you mean that you would leave the £11250 in cash and just draw down a couple of thousand a year until SPA?

Remember that the income would be taxable.

AVENUE

xylophone wrote: »

Do you mean that you would transfer both to a SIPP, take the PCLS, invest the remaining £11250 in an income fund and take the natural yield?

Or do you mean that you would leave the £11250 in cash and just draw down a couple of thousand a year until SPA?

Remember that the income would be taxable.

Well no, I was just basically wondering what annual/monthly pension would roughly be if I just drew off the 25% tax free & took the remainder as an annuity...wont be much I realise, but was hoping there would a rough rule of thumb guide to give an approximation?


Many Thanks


Avenue

ffacoffipawb

AVENUE wrote: »

Well no, I was just basically wondering what annual/monthly pension would roughly be if I just drew off the 25% tax free & took the remainder as an annuity...wont be much I realise, but was hoping there would a rough rule of thumb guide to give an approximation?


Many Thanks


Avenue

At age 60 you would get a pension of approx £300 a year, not increasing, no spouse pension, for your £11,250

xylophone

If you are looking for an annuity, what is the Guaranteed Annuity the Aviva pension offers?

AVENUE

xylophone wrote: »

If you are looking for an annuity, what is the Guaranteed Annuity the Aviva pension offers?

Ive not got the quote for this as yet so will see what they have to say.


Many Thanks.


Avenue

AVENUE

ffacoffipawb wrote: »

At age 60 you would get a pension of approx £300 a year, not increasing, no spouse pension, for your £11,250

Cheers for that, could you tell me roughly how those figures are arrived at as I don't know how companies work out the payments & over what number of years on average?


Many Thanks


Avenue