Pension Lump Sum

Dal_Whinnie

I have a pension fund which is just over £30,000. I want to cash in the full amount in order to complete a property development. I understand that I am legally required to take advice but I cannot find the relevant legislation on this. Can anybody point me in the right direction?

Dazed_and_C0nfused

I have a pension fund

Why do you think you need to take advice?

Dal_Whinnie

Dazed_and_C0nfused said:

I have a pension fund

Why do you think you need to take advice?

I have read it somewhere and when I first approached my insurance company they said I should talk to an IFA. Hence why I wanted to check legislation on surrendering full amount in pension fund but I can't find where it is.

xylophone

I have a pension fund which is just over £30,000. I want to cash in the full amount in order to complete a property development. I understand that I am legally required to take advice but I cannot find the relevant legislation on this. Can anybody point me in the right direction?

Are you over age 55 (or if under, at the permitted pension age for the scheme)?

You mention that the value of the benefits is just over £30,000. Are the benefits "safeguarded"?

https://www.reassure.co.uk/pensions/safeguarded-benefits/

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Dazed_and_C0nfused

You referred to a "fund".

Do you actually have a pension fund or is it a defined benefit pension?

SonOf

You are required to seek financial advice where the fund is over £30,000 when there are safeguarded benefits.  It is not required when the there are no safeguarded benefits.

Dal_Whinnie

Dazed_and_C0nfused said:

You referred to a "fund".

Do you actually have a pension fund or is it a defined benefit pension?

It is an individual pension policy

Dal_Whinnie

SonOf said:

You are required to seek financial advice where the fund is over £30,000 when there are safeguarded benefits.  It is not required when the there are no safeguarded benefits.

I think there may be but will have to check

ffacoffipawb

Dal_Whinnie said:

SonOf said:

You are required to seek financial advice where the fund is over £30,000 when there are safeguarded benefits.  It is not required when the there are no safeguarded benefits.

I think there may be but will have to check

Any mention of a guaranteed annuity rate in your documentation?

Dal_Whinnie

ffacoffipawb said:

Dal_Whinnie said:

SonOf said:

You are required to seek financial advice where the fund is over £30,000 when there are safeguarded benefits.  It is not required when the there are no safeguarded benefits.

I think there may be but will have to check

Any mention of a guaranteed annuity rate in your documentation?

Just checked and their is a guaranteed annuity of £2,500 pa so I am assuming that I will need advice. 

Albermarle

Pensions are a complicated area so before going further probably best to gain some basic knowledge about the different types:
https://www.pensionsadvisoryservice.org.uk/
https://www.moneysavingexpert.com/savings/discount-pensions/#need-9