Enhanced transfer value query

spitfire21

Thank you all for your considered responses.
I took the decision at 59 to retire and quit a job I hated. I took one of my three pensions (actually four I now find out). This pays me a little over £9,000 a year. I am then using the tax free lump sum I took to top up my income until I'm 65, at which point I will take my other two pensions (that is, the ones I knew about). State pension kicks in at 66. We have other savings, no mortgage and no other debt. My wife works three days a week and earns pretty good money. The plan was that she work until I'm 65. She is four years younger than me. On that basis we have a good life, several holidays a year, two cars, a decent savings pot, and we can do pretty much what we want.
Now comes along, out of the blue as I said, what looks like a game changer. I know what I'm proposing might horrify some forum users but it seems to me I have an unexpected chance to really make a difference to the life my wife and I, and our children and grandchild, have. I'm not currently a taxpayer, so it seems to me if I took this transfer in cash in two tranches, one FY 17 and one 18, I minimise my tax liability to sub 20%, given my present "income" is actually below my annual allowance.
My wife could take her modest pension now, and we could use the transfer cash to top that up to a very acceptable income. Given we have savings aside from what I'm using to top up my pension, I'd have no qualms about using a wholly unexpected chunk of capital in this way.

xylophone

State pension kicks in at 66

Have you and your wife obtained new state pension statements?

What were your "starting amounts" at 5.4.16?

https://www.gov.uk/check-state-pension

spitfire21

C£155 per week but not sure how that's relevant to my query.

Silvertabby

C£155 per week but not sure how that's relevant to my query.

xylophone always asks that - he's on a mission to ensure that everyone on these boards knows their State pension forecast!

spitfire21

Ah, that explains it!

AnotherJoe

whispony wrote: »

Hi sorry to jump on your thread but I have a similar situation with a bank pension from the 70s. Gives me roughly £9000 and £200 a month pension or if transferred it's worth £97000. My plan was to transer to a draw down and take 25% to pay off the mortgage. I contacted a IFA who after weeks has come back to me and said they would not do what I want as the pension has benefits and it would not be morally correct. I have just turned 60 and due to ill health have not worked for the last year so the idea of paying off the mortgage was great. If I go to another IFA are they all likely to refuse? Is there anything else I can do?

You dont need the IFA to agree.

All you need is an IFA to prepare a report. If that says they advise against it there are still some pension companies who will accept a transfer from what is called, I believe, an "insistent client".

xylophone

C£155 per week but not sure how that's relevant to my query.

It seems to me wise for all those on NSP to check....

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

whispony

Thank you for your replies and sorry to take so long to come back. I turned 60 last Friday and the pension was due to start when I turned 60. The IFA took away all the information on my pension and my husbands pension to see what could be done. She had been looking into them for over two months and as a result I have missed the date to let Lloyds know what I wanted to do with it. She is happy to transfer my husbands but not mine. The main problem is that our mortgage is £1500 per month so obviously paying this off would make a huge difference. What information do you need to help me with this? Sorry but I find all the pension information quite confusing. TIA

kidmugsy

AnotherJoe wrote: »

what is called, I believe, an "insistent client".

That's a piece of jargon I like: clear, terse, and not at all pompous or affected.

xylophone

Thank you for your replies and sorry to take so long to come back. I turned 60 last Friday and the pension was due to start when I turned 60.

See post 11 - has the option to transfer now gone?

From link


Types of Transfer



There is no statutory right to transfer in relation to non-flexible benefits (for example Defined Benefit types schemes) if the member is within 12 months of normal pension age. Any scheme wishing to offer a member the right to take a transfer of their DB benefits within 12 months of normal retirement age will need to provide a non-statutory right to transfer.

You have not transferred and have passed scheme NRA - the value is too high for trivial commutation - your pension will come into payment as soon as you have provided Lloyds with your choice re lump sum/pension proportions?

Check with your IFA/Lloyds.