Zurich Pension Options

amblonia

Having little knowledge about pensions, I have no idea what my best options would be.


There is, according to my latest statement a few weeks ago, an amount of £50k in a Zurich fund, which originated from contracting out in the 1990s and was set up with Allied Dunbar.


I'm in my mid 60s and intend to retire either later this year or at some point in 2020. Zurich contacted me recently to see if I wanted to keep the fund as it is, so I told them to keep it rolling for the time being.


Commencing after retirement, I would like to be withdrawing either a 25% tax-free lump sum, or taking so much per year as and when needed. To the best of my knowledge Zurich will not allow me to do this as I have to transfer the sum which is with them to another pension fund. In the meantime I cannot add to the fund.


Does this mean that I have to seek a financial adviser? What if for example, I wanted to transfer the pension to Hargreaves Landsown (a name which seems to crop up quite a lot), is that an easy process?


I have no clue as to the approximate charges for transferring from Zurich, putting into another company and the general administering of the fund, so wondered what figures, roughly speaking, could I expect.

dunstonh

Does this mean that I have to seek a financial adviser?

no. you can DIY or use an IFA (shouldnt use an FA)

What if for example, I wanted to transfer the pension to Hargreaves Landsown (a name which seems to crop up quite a lot), is that an easy process?

You can use them if you DIY. Although an IFA wouldnt use HL are they are expensive.

anselld

Have you asked Zurich?
I have a similar policy of a similar age (a "DL" policy).
They were very helpful and flexible options were available with minimal admin.
I was able to withdraw a partial UFPLS with all admin done over the phone in a few minutes.

xylophone

Would you wish to keep the whole in cash after transfer to HL?

HL do not charge for holding cash.

They do not charge for withdrawals.

Their administration is very good.

After taking the tax free lump sum, you would be left with £37,500 - assuming that you had no other taxable income you could get this out tax free in around three years.

If you chose to hold funds, there would be an administration charge of 0.45%.

You can download a guide here.

https://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+HLS&gclid=EAIaIQobChMI2fe9j7i04AIVDLDtCh1wvgprEAAYASAAEgLl7_D_BwE

Other SIPP providers here

https://www.moneyobserver.com/best-sipp-platforms-your-portfolio-2018

You could make an appointment with Pension Wise to discuss your options.

https://www.pensionwise.gov.uk/en

What is your state pension situation?

amblonia

anselld wrote: »

Have you asked Zurich?
I have a similar policy of a similar age (a "DL" policy).
They were very helpful and flexible options were available with minimal admin.
I was able to withdraw a partial UFPLS with all admin done over the phone in a few minutes.

That's very interesting. I will possibly speak to them again. When I did phone, the lady who answered the phone told me that I can't access the money or make a drawdown and that I'd need to transfer the fund. Apart from that she wasn't helpful.

amblonia

xylophone wrote: »

Would you wish to keep the whole in cash after transfer to HL?

HL do not charge for holding cash.

They do not charge for withdrawals.

Their administration is very good.

After taking the tax free lump sum, you would be left with £37,500 - assuming that you had no other taxable income you could get this out tax free in around three years.

If you chose to hold funds, there would be an administration charge of 0.45%.

You can download a guide here.

https://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+HLS&gclid=EAIaIQobChMI2fe9j7i04AIVDLDtCh1wvgprEAAYASAAEgLl7_D_BwE

Other SIPP providers here

https://www.moneyobserver.com/best-sipp-platforms-your-portfolio-2018

You could make an appointment with Pension Wise to discuss your options.

https://www.pensionwise.gov.uk/en

What is your state pension situation?

Thanks for the links.


My state pension is approximately £9k annually and my personal tax allowance is £13k, so theoretically I could drawdown £4k every year for about 12-13 years without paying tax.


Ok so if HL charge 0.45%, that would be about £200-£250 p.a.


Would Zurich charge to transfer from them to another?