Pension Robbery. You can't Have Your Money

ProDave

You are all missing my point.

IF the OP simply changed his stance, and used my illustration and told the IFA he wanted to transfer it to a flexible drawdown SIPP as he would otherwise be unable in his lifetime to withdraw the funds full value, then I am sure an IFA would agree.

It is the OP insisting on wanting to draw it in one lump, pay a lot of tax, and gamble it on property (at or close to the top of a bubble) that seems to have put a block on it.

So he could amend his plans for that simple transfer to drawdown SIPP request and he could probably go ahead.

THEN once it's in drawdown, he can still choose to be silly and do as he originally planned.

He came here asking for a solution to get hold of his money and I have presented one.

Dox

ProDave wrote: »

You are all missing my point.

He came here asking for a solution to get hold of his money and I have presented one.

...which had already been presented in post 8 in this thread. All OP had to do was read and follow!

xylophone

That is my point, I don't really care what others think of my plan, it's mine and I want to implement it.

So there!:)


First of all, clarify what type of pensions you have.

DB? DC? DC with DB underpin? DB with DC underpin? DC with GAR?


http://www.mycompanypension.co.uk/What-is-a-Money-Purchase-Scheme-with-a-Defined-Benefit-Underpin-Pensioner-Members-DB

http://www.mycompanypension.co.uk/What-is-a-Defined-Benefit-Scheme-with-a-Money-Purchase-Underpin-Pensioner-Members-DB

https://www.drewberryinsurance.co.uk/pensions-advice/faqs/what-are-guaranteed-annuity-rates

The £1300 per annum you cite seems an extraordinarily small pension for a CETV (?) of £90,000.

Have you obtained a new state pension statement?

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

Are you currently a member of a pension scheme?

kidmugsy

Saxonomous wrote: »

That is my point, I don't really care what others think of my plan, it's mine and I want to implement it.

And if I can't "I'll thcream and thcream 'till I'm thick".

ukdw

msallen wrote: »

In that case, let me thank you profusely and ask if have a few thousand friends you can convince to do similar. We'll soon have austerity cracked.

I think there must be more than a few thousand paying extra tax if this article is correct
http://moneyage.co.uk/HM-Treasury-to-benefit-from-5.1bn-bonus-due-to-pensions-freedom.php

If the OP is set on property investment then rather than saying no, shouldn’t an IFA be advising them on the benefits of additional pension contributions now and ways to invest in property in tax efficient way (as part of an overall diversified portfolio). For example by investing in commercial property within a SIPP or alternatively using the 25% PCLS as a deposit against a mortgage now, which can then be paid off in a more tax efficient way in 4+ years time once the op finishes work.

msallen

ukdw wrote: »

If the OP is set on property investment then rather than saying no, shouldn’t an IFA be advising them on the benefits of additional pension contributions now and ways to invest in property in tax efficient way (as part of an overall diversified portfolio). For example by investing in commercial property within a SIPP or alternatively using the 25% PCLS as a deposit against a mortgage now, which can then be paid off in a more tax efficient way in 4+ years time once the op finishes work.

They probably should yes - if they even wanted the OP's business then. However given the attitude displayed here,the OP would probably still insist on doing it his way as he is "not bothered about paying tax".

Malthusian

ukdw wrote: »

I think there must be more than a few thousand paying extra tax if this article is correct
http://moneyage.co.uk/HM-Treasury-to-benefit-from-5.1bn-bonus-due-to-pensions-freedom.php

Bear in mind that paying extra in tax is not necessarily a bad thing or indicative of the punter's stupidity. Example: You give up a £10,000pa defined benefit pension for a £300,000 transfer value, and through investing in line with your risk profile, good/lucky returns and following Guyton-Klinger rules or otherwise withdrawing sustainably, you're able to withdraw more each year on average than you would have under the DB scheme. Result: you pay more tax.

Or alternatively, you're seriously ill, have no dependants and the scheme is only going to pay return of contributions (around £15,000) on your death. You take the £300,000 so you have something to enjoy your last years with and pass on to your adult children. When you die, HMRC deems the transfer chargeable to IHT and your estate pays £120,000 in extra tax. But it hardly matters when your children still get 12x more than they would otherwise.

Malthusian

Dox wrote: »

Not suggesting that the IFA should implement it - just confirm OP has received advice and can transfer out to whatever receiving scheme OP can find to accept the transfer, then go ahead with whatever they want to do.

If he does that the IFA is still liable. Who else do you think the OP is going to blame when he realises how much money he's p-ed up the wall?

atush

Dansmam wrote: »

We don't know the OPs circumstances. This might be the right thing for them? We don't know and I think it's a shame folk get the kind of comments above when they're just looking for info and support. Cross face.

I can imaging the circumstance in which this would be 'the right thing'.

Please advise

atush

Saxonomous wrote: »

That is my point, I don't really care what others think of my plan, it's mine and I want to implement it. You missed the point, but thanks for the comment

Then dont come to an internet forum and ask?

You have missed the point, if paying 40% tax or more plus inheritance tax by going into property over the TAX FREE transfer of a DB pension to a DC pension and Leaving it there to be inherited by those in your declarations of wishes.

There is more than one way to skin a cat.