Section 32

[Deleted User]

I have two S32 pensions from previous employment, one approx £35k the other £11k, I have a 3rd pot that isn't S32 around £5k.
I am 60 years old, my question is can I cash the two S32 pension pots i.e 25% tax free and 75% taxable?
Or would I have to transfer them to SIPP's?
I have paperwork relating to the pensions but non of it seems to cover this.

Thanks in advance for any help

sandsy

Do they have any guaranteed benefits available when you reach a certain age?

If the one worth £35k has any guaranteed benefits, you'd have to pay for advice before giving it up and that could cost a few thousand.

xylophone

Do the S32 policies carry GMP?

https://www.financialadvice.net/s32_buy_out_plan/zone/1288

GMP is a "safeguarded benefit".

https://www.gov.uk/government/publications/pension-benefits-with-a-guarantee-and-the-advice-requirement

Blackavar

This what makes a mockery of Pension Freedom. Sure, you should take free advice from an IFA but after you have done this you should be able to do what you like with your money.
It's worth checking with S32 provider what the benefits are as they may be a much larger than 25% tax free cash.

[Deleted User]

Thanks all ,as I thought its the bigger pot that matters most and I will contact them tomorrow, this has only become an issue for me as we are about to inherit some £ so its made me want to line all my ducks up so to speak.

Dox

Blackavar wrote: »

This what makes a mockery of Pension Freedom. Sure, you should take free advice from an IFA but after you have done this you should be able to do what you like with your money.

Point me to a reputable IFA who offers free advice, particularly where the transfer of safeguarded benefits is involved! Who do you think pays their salary - not to mention their PI premium.

Alice_Holt

sandsy wrote: »

Do they have any guaranteed benefits available when you reach a certain age?

My S32 pot had a guaranteed value at retirement age, together with a guaranteed annuity rate of 10%.
Both very valuable benefits.

dmelife

If you are about to inherit £ then cashing in a pension is unlikely to be the right thing to do.

Linton

Blackavar wrote: »

This what makes a mockery of Pension Freedom. Sure, you should take free advice from an IFA but after you have done this you should be able to do what you like with your money.
It's worth checking with S32 provider what the benefits are as they may be a much larger than 25% tax free cash.

- Pension freedom was only intended to apply to normal DC pensions. Because of insufficient scrutiny of the legislation, Parliament found it necessary to implement controls after the event.
- IFA advice isnt free. If required to transfer a pension with guaranteed benefits it can be very expensive.
- Legally pension money isnt "yours". It is held in trust for your benefit, which makes things more difficult if what you want to do is judged to be not to your benefit. If you want to do what you like with money you should hold it in an ISA without the advantages of a pension.

[Deleted User]

I spoke to scottish widows today and the value of the £35k pot section 32 is now £39k and can be cashed in, will need to speak to them but won't have to pay for an IFA.
I appreciate that doing this wouldn't be the right thing for everyone but when we get the inheritance e will lose a lot of our means tested benefits and will need the £ to get us through to retirement in 5 years time.