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pensions
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awga6605
Posts: 6 Forumite
Dear All
I have a pension with abbey Life worth £22,000 i opted out of serps in 1988 and haven't made any contributions for about 8 years, i was wondering if there was any way i could access the money now either by transfering the pension to a family member or to a different company or even to sell it on, or any other ideas you may have
Your help would be greatly appreciated
many thanks
Andrew
I have a pension with abbey Life worth £22,000 i opted out of serps in 1988 and haven't made any contributions for about 8 years, i was wondering if there was any way i could access the money now either by transfering the pension to a family member or to a different company or even to sell it on, or any other ideas you may have
Your help would be greatly appreciated
many thanks
Andrew
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Comments
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Nope.You can get 25% out when you're 55 and the rest as an income when you retire, but that's it.Pensions are like that.If you want access to your capital, don't put it in a pension.Trying to keep it simple...0
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EdInvestor wrote: »Nope.You can get 25% out when you're 55 and the rest as an income when you retire, but that's it.Pensions are like that.If you want access to your capital, don't put it in a pension.
He may not be able to cash in 25% of the protected rights part of the fund though, but I understand this may change in the future.0 -
ffacoffipawb wrote: »He may not be able to cash in 25% of the protected rights part of the fund though, but I understand this may change in the future.
25% IS obtainable (since April 2007)0 -
DavidLaGuardia wrote: »25% IS obtainable (since April 2007)
OK. Thanks for that. Been out of the pensions industry for many years.
However is there a risk that the 25% tax free cash "anomaly" could be withdrawn at some point?
I guess not, given that the state sector has it in the pension scheme rules.0 -
ffacoffipawb wrote: »However is there a risk that the 25% tax free cash "anomaly" could be withdrawn at some point?
I don't think this is an anomally personally and any government would be fool hardy to make pensions less attractive to this extent. If they stopped the tax free cash a basic rate tax payer in retirment would simply lose everything they got in relief and hence have little reason to do a pension. If everything had to be used as an income they would have to offer some sort of incentive.0 -
If there were any change I'd have thought the additional tax relief offered to HRTs is a more likely target, especially as those with personal pensions receive it outside the pension wrapper.They will get 20% back outside the wrapper from next year.
Very hard to justify such a perk for the better off which also featherbeds the life industry and its distribution system. The argument for it seems to depend on difficulties related to the administration of defined benefit pensions.But these are rapidly fading away.
Wouldn't it perhaps be better to spend the money providing better quality and lower cost long term care, especially for people who succumb to dementia/Alzheimers (which is no respecter of wealth of privilege)?
There might be quite a lot of political mileage in such a policyTrying to keep it simple...0 -
If there were any change I'd have thought the additional tax relief offered to HRTs is a more likely target
Whilst they may like to do that, apparantly they cannot without a significant overhaul of the tax system due to the nature of the systems that are currently in place. Apparantly, the cost of changing it would be more than they would gain. I cannot find the source for that info but it was a common discussion point in the build up to A-day and that was given as a reason why it still existed.
Very hard to justify such a perk for the better off which also featherbeds the life industry and its distribution system
It's not hard to justify. People who aspire to earn money and in turn bring in wealth to the country shouldnt be penalised for their efforts.Wouldn't it perhaps be better to spend the money providing better quality and lower cost long term care, especially for people who succumb to dementia/Alzheimers (which is no respecter of wealth of privilege)?
Higher rate relief removal wouldnt fund those.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.0 -
Whilst they may like to do that, apparantly they cannot without a significant overhaul of the tax system due to the nature of the systems that are currently in place.
The scuttlebut I heard suggested it created problems for final salary pension schemes and might resault in them being closed down.But since they are being closed anyway....we already know this area is targeted because of the nature of the A day reforms (capped lifetime allowance etc).Higher rate relief removal wouldnt fund those.
Long term care may not affect many people in the end, but it punches heavily above its weight in the political arena, along with inheritance tax..Trying to keep it simple...0
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