How do I set up a SIPP for someone who does not speak English and can’t use a computer

sj15

xylophone said:

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

Thanks, you are so helpful.
We can only really explain to DWP why were taking money out and hopefully putting it towards a property is not seen as deprivation of capital. If they stop it then hopefully she can reapply later after sorting her housing and pension situation.
We'll speak to them once the pension transfer is complete to clarify our situation, before we make any moves.

AnotherJoe

There's been a few comments here about employing an IFA.

Seems a bit pointless if she's going to take £50k out of the £70k (£70k already only just in IFA territory) and only have  £20k left.

 

[Deleted User]

AnotherJoe said:

There's been a few comments here about employing an IFA.

Seems a bit pointless if she's going to take £50k out of the £70k (£70k already only just in IFA territory) and only have  £20k left.

 

She does not need an advisor to manage 20k. She needs an advisor to review her overall financial affairs, explain the options and recommend the best path forward before she (potentially) does something silly and irrecoverable. 

xylophone

She needs an advisor to review her overall financial affairs, explain the options and recommend the best path forward before she (potentially) does something silly and irrecoverable. 

I'm not sure how many financial advisers are familiar with the benefits system.

As far as I can gather, the OP's mother is aged 60, unable to work because of her medical conditions and on income based ESA.

At the moment,  (it seems) her only assets are the money received from the sale of the family home (where she and the OP were living) and  the share in her ex-husband's pension.

It seems that the proceeds of sale are not enough to cover the purchase of another property.

The OP is willing to gift his mother some cash (he does not want to buy a house with his mother - he will remain with her for the time being but will wish to purchase a property himself at some point) but it seems that around £50,000 of the pension share will need to be accessed in one way or another.

In the circumstances set out above (if my understanding is correct), I'm not sure what help an IFA could give?

elouise01582

I agree Xylophone however the likely problem once the mother has set herself with an AV plan on the Aviva website is that the monies will not be transferred via ORIGO.  Aviva will need to speak within someone to investigate the forms they need to complete and also they may need sight of the PSO .  That is where the problem will be - the fact that it's not a standard transfer - in fact it is not a transfer at all it is implementation of the pension sharing order. 

TVAS

You need to go down the POA route. She needs to learn English.

Why are you talking to anybody why do you not apply for a cheap SIPP that is drawdown ready on the computer and sit beside her so you input the information and you confirm with her in the language she speaks. You need a SIPP where you can request a payment online so you can arrange it for her.

Research cheap SIPPs that are drawdown ready. Why SIPP because you need lump sums from the plan to buy property rather than an annuity where the pension payment is a monthly or annual amount and would take you years to amass the lump sum you require. 

I would say as she does not speak English she can be classed as a vulnerable customer. Providers are or should be sympathetic to such customers.  Obviously payments should be made into her bank account not yours.  You need to say this because the divvy staff on the phone are too stupid to realise this.

She can tax 25% of 70k as TFC so there will be a shortfall.  £33,500 take as an income payment in month 12 March which considering you don't have POA yet you are pushing it.

If she can take the amount she will pay less tax at source and any rebate is quicker. If she does exactly the same in Month 1 April she will pay more tax at source and will have to wait until the next tax year for any rebate because HMRC will want to know her total earnings for the year. Saying I will not earn anything else is not sufficient they want the evidence i.e. end of tax year. 

Pension tax payment is the same as PAYE payments. The annual personal allowance is divided by 12 so Month 1 April is 1/12th and Month 12 March is 12/12ths  so if you take the first pension income payment in March you have the advantage of having the whole of the annual personal tax allowance available currently £12,500 instead of £1041 only available in April.

I have assumed your mother is at least 55.

As an aside she may be able to receive part of her husbands' state pension for the period of marriage. Request a State Pension forecast this can be done online. 

Good luck.