Coming up to 55 and want a lump sum.

geejayem

Before I start, let me say that money is not my hobby and because I try to enjoy life to the full, my finances have never been a priority. I've taken some dodgy financial advice in the past and couple that with my laziness, I'm now in a position where I have five separate pensions.
I'm coming up to 55 years old and I believe I can take a cash lump sum which is something I feel I need more now than in the rubbish years when I'm too old to enjoy it.
My pension pot consists of the following. 
Three pensions with ReAssure to the combined value of around £115000.(thanks to a dodgy 80's financial advisor who persuaded me to open a private pension and drop my company one). Thanks Terry from General Portfolio. 

One with Scottish Widows. My old company pension at a current value of £15100. 

One with Aegon (my current company pension) with a current value of £16000.
As I hate paperwork, my aim is to consolidate these pensions as best I can so they're all in one neat and tidy place. 
I also want to take a cash lump sum of around £20~30k. 
I'm wary of being rinsed by the tax man and for financial advise but I doubt I'll be able to go alone. 
What are my options? 
T. I. A. 

Dazed_and_C0nfused

Do you only want to take a TFLS or are you planning on starting (taxable) pension withdrawals as well?

zemarcopolo

25% of each pot can be withdrawn as tax free lumpsum. So you can achieve your 30k lumpsum without having to worry about taxman.
Enjoy...

xylophone

As a first step you could discuss your pensions in a Pension Wise interview.

https://www.pensionwise.gov.uk/en

Have you obtained a State Pension Forecast?

https://www.gov.uk/check-state-pension

It might be worth exploring the possibility of transferring the Reassure Pensions and the SW pension to a modern  pension plan which would permit you to take a 25% Pension Commencement Lump Sum tax free while leaving the balance invested.

Examples

https://www.fidelity.co.uk/ 

https://www.hl.co.uk/partners/search/self-invested-personal-pension?partners=1&theSource=PCHLS&Override=1&adg=G+HLBS+HLS+NLP&gclid=EAIaIQobChMItLLaw9bV7gIVAeztCh1M5QpVEAAYASAAEgL7wfD_BwE

This would avoid triggering the MPAA  - see here

https://www.fidelity.co.uk/retirement/money-purchase-annual-allowance/

You could seek individually tailored financial advice from an Independent Financial Adviser.

https://adviserbook.co.uk/

You would tick "confirmed independent" and "pensions and retirement" when the menu comes up.

Albermarle

I'm wary of being rinsed by the tax man and for financial advise but I doubt I'll be able to go alone. 

Firstly the taxman is actually quite generous when it comes to pensions , as all your contributions that went into these 5 pensions would have benefitted from tax relief.

You can take 25% tax free from each of them , or first consolidate them into one or maybe two pensions and take 25% from those. If you take any more than that it will be taxable at your normal rate of tax . 

It is very easy to transfer DC /money purchase  pensions and no need for financial advice , unless any of the pensions have some guaranteed rights attached and then it can get more complicated .

I would gather all the details you have for all 5 pensions and book a free one hour session with Pension Wise .

50 or over? | Get to know your pension options | Pension Wise

Marcon

geejayem said:

Three pensions with ReAssure to the combined value of around £115000.(thanks to a dodgy 80's financial advisor who persuaded me to open a private pension and drop my company one). 

So presumably these were assessed during the general review of pension mis-selling and compensation awarded if you were indeed badly advised - but why 3 instead of just 1?

geejayem

Marcon said:

geejayem said:

Three pensions with ReAssure to the combined value of around £115000.(thanks to a dodgy 80's financial advisor who persuaded me to open a private pension and drop my company one). 

So presumably these were assessed during the general review of pension mis-selling and compensation awarded if you were indeed badly advised - but why 3 instead of just 1?

One is the original pension (personal wealth plan) that was set up. Another was set up as compensation for bad advice. I have no idea why I have a third plan.

LHW99

geejayem said:

Marcon said:

geejayem said:

Three pensions with ReAssure to the combined value of around £115000.(thanks to a dodgy 80's financial advisor who persuaded me to open a private pension and drop my company one). 

So presumably these were assessed during the general review of pension mis-selling and compensation awarded if you were indeed badly advised - but why 3 instead of just 1?

One is the original pension (personal wealth plan) that was set up. Another was set up as compensation for bad advice. I have no idea why I have a third plan.

Could you have been contracted out of SERPS, so one was a personal pension for the DWP contributions?

KittyMac

So,  I have an income of £7000 a year from house rental and this year was going to take my 25% lump sum tax-free from my pension pot which comes to £27500. I have been told that although we are told it is tax-free it will be declared on my self-assessment and then the £7000 that I normal earn tax-free as it is under the allowable tax-free income amount suddenly will incur a tax bill as my entire 'incoming' money for the year will be £34500.  Is this true?

bolwin1

KittyMac said:

So,  I have an income of £7000 a year from house rental and this year was going to take my 25% lump sum tax-free from my pension pot which comes to £27500. I have been told that although we are told it is tax-free it will be declared on my self-assessment and then the £7000 that I normal earn tax-free as it is under the allowable tax-free income amount suddenly will incur a tax bill as my entire 'incoming' money for the year will be £34500.  Is this true?

You've been told wrong. You don't have to declare it and it doesn't affect any other income.

xylophone

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-and-the-cash-lump-sum

Any amount that you take as a PCLS is free of all taxes when it is paid to you. Members of defined contribution pension schemes have complete flexibility around how they can draw down their remaining pension pot after taking any PCLS, but these amounts withdrawn will be taxed as income.

The PCLS is not taxed as income.