Just discovered I have an old pension - not sure what to do now?

xylophone

Do they actually help with how to draw-down the funds?

You'll get an explanation as here

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/pension-pot-options#:~:text=Back to top-,Take your pension as a number of lump sums,rest is taxed as earnings.

but in your particular circumstances (you want to take the whole sum) there is not a great deal to say.
Once you've had your appointment you can contact Phoenix about how to proceed.

You'll get your 25% tax free - the balance will be taxable as income and you may well find that you have overpaid tax - see link in my post above.

depressedandworried

Good Morning and Happy New Year to All

I am back with questions re trying to draw-down this small pension pot I discovered I had.
I wrote to 'PensionWise' and they replied. Details below.

I wrote to Phoenix Life in November asking for their help on what to do next with regard to drawing-down the pot - they have not come back to me at all so I need to chase it up, perhaps with a 'recorded delivery' letter?
I was looking for advice on how to construct the letter and what it is I need to say to them? I do not know if they ever received my letter but I do know it was addressed and stamped correctly.

Here is my question to PensionWise and their response (they advised me to contact Phoenix Life directly)

---

Thank you for your recent enquiry to MoneyHelper. This was:

 

"Good morning 
I wanted to enquire about how easy it is to draw down a pension pot which I discovered I had recently

I have all the details now from Phoenix Life on the Contribution based pension which matured in May 2023 which is £6,595

I am receiving Universal Credit and do not work. I am 61 yrs old

What do I have to do next to get your assistance in drawing down these funds because I need to find somewhere to live very soon and this money would be a true Godsend in helping me to do this

Also, how long does it take?

Looking forward to hearing from you soon

Sincerely
xxxxxxx

---
Their response:

If you are looking to cash in the whole pot you will need to ask Phoenix Life directly if that is an option and, if so, what they need to sort that out for you.

If it is an option, 25% of the pension pot’s value would normally be tax-free whilst the rest would be liable for income tax as though it was earned income. The scheme will make a tax deduction before paying you and there is every chance this will be too much, so you need to liaise with HMRC to claim a rebate. The following link may help: https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/taking-your-whole-pension-in-one-go.

You have mentioned that you are receiving Universal Credit so I must mention that we are aware that some social security benefits are ‘means tested’ i.e. they can be affected (reduced / removed) if you have sufficient other assets or income. We are also aware that benefits taken from private / company pension schemes can be deemed to be ‘means’ that are taken into account for such testing but as our expertise is with how pensions work (particularly private / company pensions) rather than how the social security system works, I am afraid we are not qualified to explain whether and or how your social security benefits are affected. That is governed by the rules for social security benefits (not pension rules) so to find out whether cashing in this pot affects any social security benefits you receive, you will need to contact an expert in that field. Primarily that would be the agencies that pay the benefits concerned but you may also be able to get some help from the Citizens Advice Bureaux: https://www.citizensadvice.org.uk/.

 

I hope this has helped but please do come back if you need anything else.

 

Den 

Denis O'Brien | Technical Specialist | Pensions Operations | MoneyHelper |  

-----

Any advice now on how to get access to this small amount (as I am desperate now) would be very much appreciated 

Thank you
B.

molerat

You need to get back to PL and ask them what your options are, as simple as that. 

jimjames

Did you manage to get your accommodation sorted? They seem to have been dragging this out for a long time considering you'd originally posted in 2023.

xylophone

Contact Phoenix Life and explain that you wish to access the pension. You should be provided with the necessary forms.

https://www.ageuk.org.uk/siteassets/documents/factsheets/fs91-pension-freedom-and-benefits.pdf

dunstonh

I have all the details now from Phoenix Life on the Contribution based pension which matured in May 2023 which is £6,595

You say in post 1 that you were 60.   So, its unlikely to have matured in 2023 and the maximum age on most plans Phoenix has is 75.   The scheme age is just an indication of when you thought you may take it but its available to take between 55 and 75.  If you don't take it by a scheme age of 60, they will just defer it until you are ready to take it.

Any advice now on how to get access to this small amount (as I am desperate now) would be very much appreciated 

Ask Phoenix.  Just tell them you wish to take 100% of the value as a lump sum.  Ideally using the small pots rule, if that is available.

Marcon

depressedandworried said:

Good Morning and Happy New Year to All

I am back with questions re trying to draw-down this small pension pot I discovered I had.
I wrote to 'PensionWise' and they replied. Details below.

I wrote to Phoenix Life in November asking for their help on what to do next with regard to drawing-down the pot - they have not come back to me at all so I need to chase it up, perhaps with a 'recorded delivery' letter?
I was looking for advice on how to construct the letter and what it is I need to say to them? I do not know if they ever received my letter but I do know it was addressed and stamped correctly.

Here is my question to PensionWise and their response (they advised me to contact Phoenix Life directly)

---

Thank you for your recent enquiry to MoneyHelper. This was:

 

"Good morning 
I wanted to enquire about how easy it is to draw down a pension pot which I discovered I had recently

I have all the details now from Phoenix Life on the Contribution based pension which matured in May 2023 which is £6,595

I am receiving Universal Credit and do not work. I am 61 yrs old

What do I have to do next to get your assistance in drawing down these funds because I need to find somewhere to live very soon and this money would be a true Godsend in helping me to do this

Also, how long does it take?

Looking forward to hearing from you soon

Sincerely
xxxxxxx

---
Their response:

If you are looking to cash in the whole pot you will need to ask Phoenix Life directly if that is an option and, if so, what they need to sort that out for you.

If it is an option, 25% of the pension pot’s value would normally be tax-free whilst the rest would be liable for income tax as though it was earned income. The scheme will make a tax deduction before paying you and there is every chance this will be too much, so you need to liaise with HMRC to claim a rebate. The following link may help: https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/taking-your-whole-pension-in-one-go.

You have mentioned that you are receiving Universal Credit so I must mention that we are aware that some social security benefits are ‘means tested’ i.e. they can be affected (reduced / removed) if you have sufficient other assets or income. We are also aware that benefits taken from private / company pension schemes can be deemed to be ‘means’ that are taken into account for such testing but as our expertise is with how pensions work (particularly private / company pensions) rather than how the social security system works, I am afraid we are not qualified to explain whether and or how your social security benefits are affected. That is governed by the rules for social security benefits (not pension rules) so to find out whether cashing in this pot affects any social security benefits you receive, you will need to contact an expert in that field. Primarily that would be the agencies that pay the benefits concerned but you may also be able to get some help from the Citizens Advice Bureaux: https://www.citizensadvice.org.uk/.

 

I hope this has helped but please do come back if you need anything else.

 

Den 

Denis O'Brien | Technical Specialist | Pensions Operations | MoneyHelper |  

-----

Any advice now on how to get access to this small amount (as I am desperate now) would be very much appreciated 

Thank you
B.

If PL has still not responded to your letter of November 2024, ring them: https://www.phoenixlife.co.uk/customer-centre/contact-us