2nd CETV advice please

Coroda

Hi,
Hope someone can assist.
I cashed in my main company pension via the CETV process. I paid for an actuary to advice as the amount was over £30K as per the rules, This incured some serious fees! I then joined a second pension scheme and would like to do the same again, I will have been in the 2nd scheme for just over 2 years at retirement age 55, The new pension will have a pension pot of approx £40k.
My question is do i have to go through the same expensive process again? The outcome of which will have no bearing on any advice given as i have been through this process once and decided to go ahead with the original CETV so i am fully aware of all the pro's and con's
Thanks for any advice

cloud_dog

CETV only relates to DB scheme transfers...is your new pension a DB scheme or a DC scheme (pot of money)???

Pension_Geek

Coroda wrote: »

Hi,
Hope someone can assist.
I cashed in my main company pension via the CETV process. I paid for an actuary to advice as the amount was over £30K as per the rules, This incured some serious fees! I then joined a second pension scheme and would like to do the same again, I will have been in the 2nd scheme for just over 2 years at retirement age 55, The new pension will have a pension pot of approx £40k.
My question is do i have to go through the same expensive process again? The outcome of which will have no bearing on any advice given as i have been through this process once and decided to go ahead with the original CETV so i am fully aware of all the pro's and con's
Thanks for any advice

How did you cash in the first pension if you havent reached 55? Have you transferred it?

The short answer is, If its DB and over £30k, then you'll need advice. If its not, Ie, you are simply accruing a pot, then you could transfer it at any time, provided your scheme rules permit this while still working. Some companies wont allow transfers in unless through an adviser, but a lot do.

Coroda

Hi Thanks for replies.

I have infact ''transfered'' my initial pension.
My new pension is a ''defined contributions'' pension.

Regards

Dox

Coroda wrote: »

Hi Thanks for replies.

I have infact ''transfered'' my initial pension.
My new pension is a ''defined contributions'' pension.

Regards

You don't need advice to transfer or 'cash in' a DC pension. Bear in mind that if you take cash from a DC scheme which exceeds the 25% tax free amount, tax relief on any future contributions to a DC arrangement is limited to £4K a year.

Albermarle

There are various options you have with a DC pot ( once you are over 55) :
1) Leave it where it is to hopefully grow for a few years . The fact you will have stopped work will not mean you lost access to it.
2) Cash it all in ( paying tax on 75% of it)
3) buy an annuity/fixed income with it
4) Go into flexi access drawdown

Or first you could transfer /comsolidate it to your other to simplify the admin. Or transfer that one to this one .

Coroda

Thanks everyone,
So i can ask for a second CETV without having to pay for the actuary, ''Thats great news'' then add the funds to my original private pension.

xylophone

If your current pension is DC then there isn't a CETV.

There is just the value of the current pension at the time you transfer it to your other pension (pension 1)

You ask the administrator of pension 1 to arrange the transfer.

I take it that you plan to leave your current employer at age 55?

Coroda

Thanks again,
So can i transfer the new pension pot total to my existing private pension fund?
Does this incur any tax implications during the transfer process?

LHW99

Thanks again,
So can i transfer the new pension pot total to my existing private pension fund?
Does this incur any tax implications during the transfer process?

Yes, provided
a) your existing pension will take a direct transfer and don't want you to operate it all via an advisor
b) you are keeping it within the pension wrapper.
There could be transfre charges from your current pension holder if you move the funds themselves (if the other pension can accept them), there often isn't a charge for moving in cash.
There could be a closure fee from your old pension.
You'd need to find those things out from them.

sandsy

Coroda wrote: »

Hi,
I paid for an actuary to advice as the amount was over £30K as per the rules,

Assuming this was a DB transfer, I hope the actuary was a pension transfer specialist who was employed by an FCA regulated firm that was able to give advice on pension transfers.

I know plenty of actuaries who aren't able to give advice on giving up a DB scheme because the rest of the conditions aren't met.