We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Drawdown providers minimum premiums
Options

oddiZ
Posts: 16 Forumite
Anyone know of a company that will take a transfer into a drawdown plan of £2400. Most it seems have minimum pemiums way above that amount.
0
Comments
-
£3600 is the lowest I can think of off the top of my head.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
Think they'll accept it if throw in another £4500 of protected rights?
I'm 50, looking to take the 25% tfc (£600) now and max drawdown as for the forseeable future i'm unlikely to return to work so the drawdown will not be taxed.
The protected rights I'll just leave till 60 and cash them in under the triviality rule as they'll very unlikely top £16000 which I pesume is indexed in some way.0 -
You're probably best to take 25% TFC from the whole fund and annuitise the rest as it's so small.
That way you would get 1,725 in cash, plus 240 for the first year, so nearly 2k upfront and then 240 quid a year forever. By the time you are 60 you would already have received half the value of the pension back ( ie 4125). I wouldn't bother to wait.Trying to keep it simple...0 -
I thought protected rights could not be had before age 60 and that no tax free lump sum can be had from them.0
-
I thought protected rights could not be had before age 60 and that no tax free lump sum can be had from them.
The rules changed last year
Now you can take them at 50, including TFC.But you still have to take an annuity with a 50% spouse pension, even if you aren't married.Trying to keep it simple...0 -
Okay so let me get this straight, I can take 25% of the p/r tax free now but i cant go into drawdown with the remaining 75%. I must buy an annuity with it.Correct?0
-
You can do drawdown with protected rights. However, not with a SIPP but with a personal pension.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
Okay so let me get this straight, I can take 25% of the p/r tax free now but i cant go into drawdown with the remaining 75%. I must buy an annuity with it.Correct?
The rules don't say that.
PR money is not barred from drawdwon.But insurance companies don't allow drawdwon for funds of any kind under around 100k.So if you have a small fund you need to put it in a SIPP to do drawdown.
Example
Dunstonh has claimed in the past there is an insurer who offers PR drawdown for small funds but he repeatedly has refused to reveal the name of the provider. So I'm afraid there is a degree of scepticism.Enquiries by others have failed to find a suitable provider for funds much larger than yours.Trying to keep it simple...0 -
.But insurance companies don't allow drawdwon for funds of any kind under around 100k.
Dunstonh has claimed in the past there is an insurer who offers PR drawdown for small funds but he repeatedly has refused to reveal the name of the provider. So I'm afraid there is a degree of scepticism.Enquiries by others have failed to find a suitable provider for funds much larger than yours.
I have named it before but only on threads where it could be seen that I am recommending the provider.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Actually i've spoke to one local IFA at first thinking the p/r were untouchable till 60 i just asked if drawdown were possible on the pp fund. He's got back to me today and confirmed there is such a company but reckons the charges outweigh the benefits and thinks it's not worthwhile. Wether he was looking at including the p/r fund in it i'm not sure and suggested may as well leave the lot till 60 and commute under the triviality rules.
Personally I think he really did not want to know which I can well understand with such a small fund.
If i can take 25% tfc from the total now and have the rest in a drawdown plan that would be ideal. I really could not be bothered if the charges are high or not and am quite happy to go the execution only route with no rebateing commission.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards