Pension Advice Please

Sheba42

Hi folks,

I don't know much about pensions but I  currently have a small defined benefits  council pension that doesn't allow me to cash in. Therefore from I can work out via good old Google, I think I now need to transfer it elsewhere,  in order to draw it out in full. 

They have told me it's worth just under 19k, that's the CETV they gave given me.  So as I don't work I was hoping I could transfer it and draw out 12k one year, and 7k the next year so I don't need to pay tax on it.

I'm female, 56 and don't work now due to health problems. 

Google has helped me this far but I have no idea where to transfer it to, if there will be a charge to do this or where to start really .....help  :-) 

Can anyone kindly recommend another pension provider I could transfer it to, how do I do this and what I should expect to pay in charges to do this? 

Would really appreciate any help, thank you very much in advance :-) 

Albermarle

Almost any pension provider will accept transfers in . In fact they are very keen to do so as it is extra business for them .
Larger DB pensions are an issue but as yours has a relatively low CETV then should be OK .
When you withdraw it , 25% will be totally tax free anyway . The rest taxable ( but you will only pay tax if you have enough taxable income ) 
There will be no charges to transfer , just some low platform fees for holding the money .
Probably you will be best off with Hargreaves Landsdown , as some of the others can be a bit awkward if you set up a new pension transfer in and then withdraw it all in a short period of time , as it costs them money . 
Pensions: How A Pension Works and the Basics | HL

elouise01582

Aviva's stakeholder would allow this.

dunstonh

A lot of providers wont accept sub £30,000 DB transfers without advice.   i.e. they won't accept any DB transfer without advice.    So, choice may well be limited.

sevenhills

Sheba42 said:

I'm female, 56 and don't work now due to health problems.

I know my local authority pension allows retirement from the age of 55

"You can retire and take your pension any time between age 55 and 75"

https://www.wypf.org.uk/active/all-about-your-pension/when-can-i-retire/

Lemon_dr1zzle

You may be eligible for ill health retirement. Your pension will be paid without the early retirement factors applied. 

Albermarle

dunstonh said:

A lot of providers wont accept sub £30,000 DB transfers without advice.   i.e. they won't accept any DB transfer without advice.    So, choice may well be limited.

OK I was not aware of that, but presumably  some will ?

xylophone

presumably  some will ?

I saw this

https://inews.co.uk/inews-lifestyle/money/how-cash-in-defined-benefit-pension-under-30000-without-financial-advice-251929

I spoke to six of these firms. Aviva and Fidelity both told me that they will not process a transfer request without financial advice, irrespective of the value of the pot.

The others were more accommodating. Hargreaves Lansdown, AJ Bell, Interactive Investor and Bestinvest will all process such a transfer, but some came back with warnings about progressing with this decision. Please note, these are not recommendations.

 However, the article is dated a year ago.

As far as AJ Bell is concerned, I guess one might infer that for transfers under £30,000, they will not be requiring that advice  is taken.

https://www.youinvest.co.uk/faq/do-you-accept-final-salary-transfers

To transfer a final salary pension scheme, or a scheme that includes safeguarded benefits (see below) worth at least £30,000, a suitably qualified financial adviser must recommend that the transfer is in your interests. 

The OP could ring round the providers mentioned and discuss the transfer out of a DB pension with an under £30,000 value.

xylophone

I'm female, 56 and don't work now due to health problems. 

Have you obtained a state pension forecast?

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

Have you checked (as suggested by other posters above)

if you would qualify for an early pension on grounds of ill health

or  could draw the pension now (with actuarial reduction)?

Just one other thought - are you by any chance drawing means tested benefits?

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs91_pension_freedom_and_benefits_fcs.pdf

dunstonh

However, the article is dated a year ago.

I think that is going to be a problem.

OK I was not aware of that, but presumably  some will ?

I am not aware of any on the intermediary side. 

It would  require some phoning around on the DIY side.

ian16527

I have transferred a small DB pension under £30K to AJ Bell this year, but that was before they stopped accepting the insistent client over £30K ones, so may have stopped altogether.