Buy out plan 25% tax free

Toppervte33h

Yes I have read it and I get it it is the GMP part that is the issue, but what I do not get is that 27 years ago none of this information was made clear to me at all, that I would have so much trouble getting hold of some of that money. These kinds of issues may be crystal clear to someone from within the industry but they are not clear to Joe Public. Despite the restrictions stated in that link, regarding transfers out, I have actually been given the option to transfer out by my provider and there are companies out there that appear to want to provide what my pension provider does not, assuming I decided to transfered the pot to them. It seems illogical therefore that they are prepared to allow the whole amount to be transferred out to another provider who will provide a cash free lump sum, so why can they not? Or are these sites that are offering such things such as the annuity advice centre just bogus scams?

xylophone

until my wife and myself are elligible for our state pensions.

Have you both obtained a state pension forecast?

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

xylophone

I have actually been given the option to transfer out by my provider

Odd.

https://www.thisismoney.co.uk/money/pensions/article-3680749/I-want-pension-freedom-trapped-section-32-buyout-plan.html

And 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 advice requirement for safeguarded benefits

Safeguarded benefits offer additional security and often valuable guarantees that are lost if the member transfers or converts their benefits to acquire flexible benefits, or accesses their benefits using the new flexibilities. To ensure that individuals who are considering any of these options are fully aware of what they would be giving up, the Government introduced a new safeguard on 6 April 2015 requiring them to take appropriate independent financial advice before doing so.

Circumstances in which advice is required

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an FCA authorised adviser before:
• converting safeguarded benefits into flexible benefits (or in the case of benefits which are both safeguarded and flexible, into different flexible benefits)

Pension benefits which represent, or include, a GMP are therefore safeguarded benefits.



Buy-out policies (including Section 32 policies)
Where a member’s accrued benefits under an occupational pension scheme have been “bought out” (i.e. the scheme’s liability has been discharged by the purchase of a deferred annuity or insurance policy), the benefits under the contract or policy will be safeguarded if an amount of pension income is secured, or if a liability in respect of contracted out rights (such as a Guaranteed Minimum Pension) has transferred under the contract or policy to the provider, or if the terms of the contract or policy otherwise include a guarantee about an amount of pension income or a rate of conversion into an income.

Toppervte33h

Yes we indeed have both obtained forecasts. Based upon what you have posted though it seems that even for such a small pot I will have to bite the bullet and seek costly professional advice, although I am reluctant to do, but thanks for posting