small pension pot

TS1965

Hi

First post on here as I'm looking at a pension that i paid into many years ago
I've not looked much at pensions, but as I get closer to 55, I'm now looking at some options

I have been with the same employer for nearly 30 years, with another 4 or 5 to go before I plan to retire. Scheme is final salary, non contributory and I am more than happy with what I will receive once I retire.

Question I have is about a small pension from before I started with my current employer
For the first time, I can now access my pension information online, having not seen anything for many years

I want to look at options when I am 55, to clear some debt I may have and set a few things up for when I retire a few years after

I am not very knowledgeable about pensions and do, at some point plan to get an appointment with pension wise, my employer also runs days when pension advisers are on site

I was at the company for only four years and I can now see a transfer value
But not sure what it all means!

I'll use some made up figures to illustrate

Total non guaranteed transfer value of benefits not including AVC's - £85,000
Value of guaranteed minimum pension £45,000
Value of non GMP arising from pensionable service up to 5th April 1997 £40,000

My understanding is that I can take 25% tax free - but of what figure? the total transfer value?
Anything above 25% is taxed based on current tax levels?
I would like to get as much out as possible, even if I pay some tax top provide a deposit on a small property in a buy to let scenario

Like I said, not very knowledgeable about pensions, probably due to knowing the my current pension is a good one and it's not been something I have been overly concerned about

Thanks

Tony

TS1965

and also, what fee's are involved

Thanks

Tony

xylophone

You have a deferred pension from another Defined Benefit Scheme?

It would appear that the value of the safeguarded benefits is greater than £30,000

See post 7 here if you are thinking of transferring out.

https://forums.moneysavingexpert.com/discussion/comment/75584461#Comment_75584461

If transferred out, you would be able to take a PCLS and leave the balance invested to draw down at a time that suited you.

https://adviserbook.co.uk/

With the above you would tick "confirmed independent" and "pension transfer".



As an alternative, it may be possible (depending on scheme rules) to bring your deferred pension into payment earlier than Scheme Pension Age - there would almost certainly be an actuarial reduction, but you would probably be able to take a pension commencement lump sum - you would then have a monthly pension, taking which might carry you into a higher income tax bracket.

Have you obtained a new state pension statement?

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