have £88k in Zurich pension fund. Need to move it

spencer999

I'm 55 later this year and need to partially withdraw some ££.

But with Zurich you can't take a lump sum tax free. Example: if I withdraw £10,000, £2500 is tax free and £7500 is taxed. Ya dig?

Best place to shift it to? How long is a piece of string?

Security and low risk is of the essence!!!!

Thanks kids

dunstonh

But with Zurich you can't take a lump sum tax free. Example: if I withdraw £10,000, £2500 is tax free and £7500 is taxed. Ya dig?

Yes. Zurich support UFPLS on that plan but not income drawdown. You appear to be after income drawdown.

Best place to shift it to? How long is a piece of string?

Whatever modern plan suits your objectives.

Security and low risk is of the essence!!!!

But you want to do income drawdown and take money out of your retirement funds before you retire. That is not low risk.

What do you mean by security? Security of what?

spencer999

thanks for reply. Forget the bit about security/low risk. I just need some money towards a house. Intend to withdraw about half the total fund.

OldMusicGuy

You can transfer it to a SIPP that allows you to drawdown flexibly. You could just leave it all as cash in the SIPP (very low risk but earning minimal interest) or invest some/all of it. It's up to you to decide what investments you would put it in, the choice of funds varies by SIPP provider.

However, only 25% is tax free, so you could draw £22,000 without paying any tax. Everything else would be taxable.

This website has a comparison of what the different platform providers offer and what they cost: http://monevator.com/compare-uk-cheapest-online-brokers/.

If you see some that look of interest, search for their names on this forum because you will find various opinions about them (and the choice of funds).

redux

I would look at this a bit more. Maybe a mortgage would be a better idea for that house.

I'm far from an expert on early withdrawals from pensions (I don't need to be yet), but I think it might affect how much you are allowed to add in future.

spencer999

it's a long story. Trust me I need the cash

xylophone

HL might suit your objectives.

http://www.hl.co.uk/pensions/sipp

HashModha

Sorry to but in...I have pensions with Zurich also who don't allow Tax free cash and leave the rest invested..so I contacted Pension Bee.. cause I live in Thailand.. they are being stupid about verification address......any ideas folks?

dunstonh

HashModha wrote: »

Sorry to but in...I have pensions with Zurich also who don't allow Tax free cash and leave the rest invested..so I contacted Pension Bee.. cause I live in Thailand.. they are being stupid about verification address......any ideas folks?

How are they being stupid?

You should create your own thread and not add to an unrelated thread.

MallyGirl

redux wrote: »

I would look at this a bit more. Maybe a mortgage would be a better idea for that house.

I'm far from an expert on early withdrawals from pensions (I don't need to be yet), but I think it might affect how much you are allowed to add in future.

if you take anything more than the 25% tax free bit you are limited to contributing no more than £4k to pensions for the rest of your (working) life. Unless you are part of a non contributory FS pension this could have a big impact on your retirement

Albermarle

If you take £44K from your Zurich pension ( so called UFPLS withdrawal) £11k will be tax free and £33K is taxable ( assuming you are already a taxpayer )
If you transfer to a pension offering flexi drawdown you can withdraw £22K tax free and the other £22k will be taxable .
There are two advantages of using the UFPLS route :
1) No need to change pension provider ( can take some time )
2) There will remain £11k tax free cash for the future in the remaining £44k. Whilst with the flexi drawdown all the remaining £44K will be taxable in future .
One disadvantage is that for the current planned withdrawal the higher taxable sum of £33K may push you into paying some 40% tax on it . Although you could split the payments over two tax years .