Pension transfer so can take out half as cash pre April 5th and half April 6th

LarryNectar

My colleague has a small but useful 90k pension pot with Deutsche Bank admmnistered by AOn Hwitt. He is 55

Afer taking 25% tax free he wants to takke half the balance pre April 5th and half post April 5th to minimise tax.He is not intrested in annuities and the like.

However |Deutsch pension is too inflexible for this.

What is the cheapest fastest way for him to do this .. I assume with a transfer to a more flexible adviser. And what would total fees be. He is not against using a cheap efficent IFA if that is required.

This is very live as he plans to write to Aon Hewitt this week

ps no interest in any wider financial advice

OldMusicGuy

If this is a DC pot, the fees will probably be zero if he does it himself (I did this for 6 DC pots). He needs to choose the new flexible pension provider, set up a SIPP and then ask them to request a transfer from Deutsche Bank. The two companies should do it all themselves for nothing. It will likely take some weeks for the transfer to be processed.

He also needs to think about he funds he transfer it to, or maybe he just wants to transfer it to a SIPP as cash. Might be best to transfer the whole thing before taking the lump sum. I suspect that might cause some problems with the transfer, but the IFAs on here will know.

LarryNectar

Thanks not sure if DC or not ... one option is for him to buy an annuity afterwards .......

Sounds very interesting what is the best new flexible pension provider how would I find out

tacpot12

Best in this context probably only needs to focus on cost. There are only going to be three transactions on the new SIPP account, a transfer in, and two withdrawals out, so he doesn't need a provider with lots of bells and whistles. He just needs to compare the costs for opening, making withdrawals and closing the account.

This thread may help with selecting the lowest cost platform for this: https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet

kidmugsy

Hargreaves Lansdown would probably do pretty well, but he'd have to leave a bit behind in April of 19/20 so that he avoids their early closure charge. Check their T&Cs for up to date info.

P.S. He'd also want to check how much notice he'd have to give for each withdrawal.

P.P.S. If he wanted to transfer as shares, funds, and whatnot I don't know how long it would take. I always transferred as cash, and it was PDQ every time.

xylophone

Deutsche did have a DB scheme - he needs to check whether the pension is DB or DC.

LarryNectar

oops change of plan .... plan is to take out 25% then annother 11K before April 6th then 11k after 6th. Rest invested in some tracker fund till whenever

Contaccted HG

Is there a cheap SIIP where can buy property likely overseas commercial property ... I suspect not

Also how long would a transfer take from D||Bank to HG

bolwin1

Is he taking 11K p.a. to keep under the personal tax allowance & avoid paying any tax on the pension withdrawal ?

You mention he's your colleague - if he's still working, presumably he's still earning, so this wont work as he will have (probably) used up his tax allowance this year.

LarryNectar

ooh I should have said former colleague ... not based in the UK no UK earnings but i get your point if had UK earnings

Marcon

This is getting tiresome with the information being drip fed. Maybe he should start doing his own research?

LarryNectar

not as tiresome as youur last comment