Taking pension lump sum at 55

Albermarle

1% fee for an IFA who is a pension transfer specialist is very low , although £10K seems a bit high as well. 
The advice maybe that the transfer is a good idea ( especially as you have no dependents and a serious illness) . In which case transfer to a DC pension with Standard Life ( or other ) should go OK . Then you could take 25% tax free and then spread the rest over a number of years .
If the advice from the IFA is not to transfer , you still can but many pension providers ( including Standard Life I think) will not accept the transfer in. However a few pension providers will if you can provide evidence that you have received the appropriate advice. Make sure before engaging the IFA that even if they advise against transferring they will still be willing to say that you have received appropriate advice. See the links from Xylophone in an earlier post.

AnotherJoe

Fair enough maybe £10k is high, i was going from memory of another poster but their TV may well have been higher than OPs.

Gig1968

I appreciate your comments and I thankyou for them. I'm planning ahead . I'm no rush . I use the benefits board often I am on the correct amount I'm on ESA I have just  applied for pip so fingers crossed.. I won't bore you with the details but the two pensions s that I have built up were when i had a £30k job as a management accountant and company car  travelling round the country for npower and powergen before being struck down by EPILEPSY.

xylophone

 To be fair having spent three out of the last twelve months in hospital and having no wife or  kids. I wrongly though having the money in my bank if anything happened to me at least that money would end up with her. 

Who is her?

Contact my pension administrator Rpmi discuss it with get them to provide me with a value.
Discuss with an independent financial advisor cost  1% I have read on internet  or £10k as mentioned above not sure 
Pension provided transfers it to someone like standard Life.
Followed discussion with IFA I decide to take it over 5 years and the immediate 25% tax free.

Not all IFAs are Pension Transfer Specialists. See  https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-transfers-conversions/

https://adviserbook.co.uk/ You would tick "confirmed independent" and "pension transfer" on the menu.

You would need to check that your chosen provider would accept a DB transfer regardless of whether or not it is recommended by the Specialist.

That said,  see https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/transfer-pension-scheme/

However, although most schemes provide the right to transfer, not every scheme has to accept an incoming transfer.

A stakeholder pension scheme is currently the only type of scheme which must accept any transfer from another registered pension scheme.

It seems that SL does offer a stakeholder.

https://www.standardlife.co.uk/c1/accounts-and-services/pensions/stakeholder-pension-features.page

Gig1968

Thanks for your comments 

Her is my sister.
That's why I will choose standard Life.
Remember I also have a second pension which I have just found out is payable at 63., I finally managed to login to towers Watson who are the innogy pension orovider.. As they are both under the ESPS scheme I could join them together but for the paperwork would be a nightmare I guess.

xylophone

Gig1968 said:

Thanks for your comments 

Her is my sister.
That's why I will choose standard Life.
Remember I also have a second pension which I have just found out is payable at 63., I finally managed to login to towers Watson who are the innogy pension orovider.. As they are both under the ESPS scheme I could join them together but for the paperwork would be a nightmare I guess.

But presumably you want to retain the second pension as DB so joining them is not what you want?

Your sister is your nominated beneficiary?

enthusiasticsaver

Gig1968 said:

I am going to contact them on Monday they are called Rpmi.
I'm thinking of asking them for a cash value of the whole pension pot and taking it one one go.
I have used a defined benefit tool on the internet and worked out the value at around about £160k.
I would get the first 25% tax free leaving me around £120k to pay tax on.
I only get £5k in benefits so that would leave me with a further £7k tax allowance to use 
So my tax bill would be 120 x 40% = 48k leaving me with £72k however adding the remaining tax allowance back I woukd have £79k 
So tax free £40k
After tax £79k
Total £119 k
Does that sound pkausible

You will not be able to take the whole pot in one go if it is a DB scheme and it sounds like it could be.  There are rules that a pension transfer specialist would have to advise on any DB scheme with a value over £30k.  The cost of this advice is expensive and very few specialists will agree it will be in your interest to do so. Also you are working on a value at the age of 60.  If you are able to take it at 55, and you may not be able to, then the value will be significantly reduced. Many people, myself included explored this and found it prohibitively expensive and difficult.  In the end I took the pension as a DB pension at the age of 60. It was not the same scheme as yours though so best you look at the terms and conditions of the scheme. 

Gig1968

My sister is my nominated beneficiary .
But before my health reformated even further I'd really like to enjoy the bucket list I have made.
As I'm nearly 55 I have the option to now do that which is why you guys are so helpful to providing with advice.
I wouldn't join the two pensions now as I want to keep the second one for my funds from when I'm 63 but I could have done years ago.
Never released it was so bloody complicated to get hold of your own money!!!!

Gig1968

I have just found a copy of the ESPS scheme rules for electricity north west they will be the same for powergen and npower they do not differentiate as they are one big scheme. 

Gig1968

I have had a conversation with my administrative pension provider and we chatted and I am going to apply for I'll heath retiremen under the scheme rules.