Abbey Life Pension (opted-out SERP pension)

smstap

Hi All,
i was wondering if anyone could help with this as i am very confused as to the status of an Abbey Life pension i have - i was convinced to opt-out of SERPS many years ago and from memory i was only opted out for a relatively short time. I am now 62 and get statements from Abbey Life - there is only around 23k in this and as i understand it this is a so-called 'zombie' fund.
My question is, am i able to take this all out as a cash lump sump or drawdown a certain amount and transfer out the rest to a different provider?
The growth on this pot seems to have been poor and i am thinking of using some of this money to completely pay off the remainder of my mortgage which seems to be a better option for me.
However, i'm not sure if you can actually do anything with these 'opted-out' pensions.

Thanks

xylophone

I doubt that Abbey Life would offer drawdown.

It should be possible to transfer it out to a scheme that permits drawdown.

You should be able to access 25% tax free - the balance would be taxable as income in the year of receipt.

Check with Abbey Life re any closure/transfer charges.


https://www.pensionwise.gov.uk/ - you could book an appointment.

http://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+SIP&gclid=CKbU4LLIydICFQIM0wodh5sGKA

If you went the HL route, you would not close the pension in the first year because of the fee that would apply.


Have you obtained a new state pension statement?

https://www.gov.uk/yourstatepension?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

smstap

Hi,
thank you for this - i just wasn't sure if i'd be stuck with Abbey Life but will look at the links - thank you for your help, much appreciated.

hyperhypo

Does anyone know whether these presumably former Protected Rights , pre 1995 SERPS opt out schemes , which were largely invested in with-profits in their original form, are subject to the
£30k rule that applies when someone is considering transferring a DB scheme.

In the case of the OP i realise this wouldn't apply, but i wonder how generally easy it might be, for example, to transfer such a scheme which is > £30k and which may have guarantees associated with it.

Is it the existence of any guarantees (bonus rates, some even had guaranteed annuities associated with them in the old days).

I have one such former Norwich Union SERPS opt out Personal Pension which i'd wondered about moving into my SIPP but never actioned any move as i'd come to view it's current £35 transfer value as an adjunct to my SP, with its 4% guaranteed bonus.
Also i have some vague memory of talking to a SIPP provider who thought it might have the £30k rule applied and require some formal advise before it could be moved.

Does OP know of any bonuses, guaranttees associated with their scheme ?

I hadn't paid anything into mine for years either , having been in a DB scheme from 2000, but i use to wonder whether it would be prudent to move. As things stand i've left it alone, hoping to use it to defer my SP perhaps.

dunstonh

i was convinced to opt-out of SERPS many years ago and from memory i was only opted out for a relatively short time.

Contracting out (not opting out) has turned out to be a very good thing to do for most people.

there is only around 23k in this and as i understand it this is a so-called 'zombie' fund.

Its not a zombie fund.

My question is, am i able to take this all out as a cash lump sump or drawdown a certain amount and transfer out the rest to a different provider?

yes

The growth on this pot seems to have been poor and i am thinking of using some of this money to completely pay off the remainder of my mortgage which seems to be a better option for me.

That is very unlikely to be the case unless you have chosen investment funds that are very very low risk.

dunstonh

Does anyone know whether these presumably former Protected Rights , pre 1995 SERPS opt out schemes , which were largely invested in with-profits in their original form, are subject to the
£30k rule that applies when someone is considering transferring a DB scheme.

the £30k safeguarded rule applies to them as they are personal pensions.

Does OP know of any bonuses, guaranttees associated with their scheme ?

Not many but some do.

hyperhypo

dunstonh...yes my view of my old NU scheme went from suspicion to being pleased i did contract out in 1988....£8k's contributions haven't turned out to bad and i'm keeping mine for a rainy day ......