£81K transfer value

ossie48

I have a Defined Benefit pension scheme from the 80's with a transfer value of £81K.

What is the easiest way to access this ? I'm 52, no mortgage or debts, in receipt of a decent pension so no future money worries but would like to spend the money on giving my children the leg up in life I didn't get.

Am I correct in that I need to see an IFA.....I then transfer to a SIPP ? At age 55 I can access 25% tax free then draw down the rest whilst paying tax on these withdrawals.

Should I leave this until I'm 55 or get the ball rolling now ?

Nitram29

I would think you do need to get advice but if your intention is to get at it ASAP rather than take it as an annuity then transferring it now to a SIPP can give it potentially a few years to grow. It can also give it a few years to shrink because there are no guarantees but you could put it in a low risk fund to minimise exposure to volatility.

Doubt you could crack it open before 55 without significant penalty or troubles.

LHW99

Doubt you could crack it open before 55 without significant penalty or troubles.

You can't, unless you have significantly reduced life expectancy, or it is a scheme written with an NRA less than 55 - in which case you wouldn't need to transfer.

xylophone

If you want to transfer out you will need the advice of a Pension Transfer Specialist.

http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/?gsasro=1&gsaq=pension%20transfer%20specialist

AlanP_2

Without predicting the future, Cash Equivalent Transfer Values have been at record highs over the last couple of years as interest rates (as reflected in Bond Yields) have been so low.

Who knows where they will be in a few years time - point being the CETV value can go up and down.

ossie48

xylophone wrote: »

If you want to transfer out you will need the advice of a Pension Transfer Specialist.

http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_transfer_conversion/?gsasro=1&gsaq=pension%20transfer%20specialist

Thanks. As part of the advice do they recommend what sort of scheme to transfer to and can I do this now at 52 ? I fully accept I cant access the funds until 55 and have no issue with that at all. My worry is that the Govt may well change things in the next few years so I'm unsure if I should act now or not.

xylophone

As part of the advice do they recommend what sort of scheme to transfer to and can I do this now at 52

The adviser would make recommendations concerning the transfer and investment of the pension. You could transfer into another scheme at the age of 52.