Trivial Pension conundrum

JGJackson

Hello,
My wife has a defined pension fund of about £16k from Morrisons for whom she worked till 2001. Unfortunately, she also has a small pension from a more recent job now being paid that takes the total amount to more than the £30k commutation level allowed to take the whole amount. The non-taxable amount of just over £4k would be fine but after that an annual pension of about £600 would be lost. As a WASPI woman she's still waiting for her state pension so access to more of this fund would help her enjoy retirement better while she's able to.

Is it possible (or feasible) to transfer the total amount to a personal pension fund and then she would/could (??) have more control over how she takes it.

Any advice or guidance would be gratefully accepted.

Jim

xylophone

Your wife has a DB pension valued at £16,000?

She could take a £4000 pcls and an annual (index linked?) pension of £600 a year?

Why do you say that the £600 pa would be "lost"?

With regard to a transfer to a DC scheme, see

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

The DB pension is valued at under £30,000 so that she is not required to take advice.

However, some providers will not accept a transfer in (of whatever amount) without it.

AJ Bell has been mentioned as one that will.

Has your wife obtained a new state pension statement?

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

JGJackson

Thanks for the reply, Xylophone.

In reply to your queries...

Re the lost £600 per annum, I just mean that a monthly £50 payment on that will "disappear" too easily into the general run of things without doing too much extra.

Her small pension from her part time job with the police and being taken, takes the total value for pensions over the £30k commutation level allowed for a total cash in.

The transfer option (if it can be done) would be to transfer that £16k into a Personal pension scheme from which she can, in essence and with the freedoms granted in recent years, decide how she wants to take it e.g. if she wants £3k per year that should be available etc. Something of that ilk would be more appropriate as she can then do something special with it that is noticeable and memorable.

She has just received a State pension forecast starting in November this year.

xylophone

Try AJ Bell?

https://www.youinvest.co.uk/faq/do-you-accept-final-salary-transfers

Thrugelmir

JGJackson wrote: »

Re the lost £600 per annum, I just mean that a monthly £50 payment on that will "disappear" too easily into the general run of things without doing too much extra.

If anything happens to you. What pension provision would she be left with. £50 a month indexed for life. Is still enough to do something. Blowing lump sums is all very well. Trouble is once work life finishes there's no opportunity to replenish ones capital.

mgdavid

JGJackson wrote: »

......., I just mean that a monthly £50 payment on that will "disappear" too easily into the general run of things without doing too much extra.
...........

which suggests poor money management; I'd address this before taking cash out of pensions....