Access to Defined Benefits Pension

Sheba42

Dazed_and_C0nfused said:

Sheba42 said:

Dazed_and_C0nfused said:

Sheba42 said:

xylophone said:

If the value of the safeguarded benefits is under £30,000 then you are not required to take advice in respect of the transfer.

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Just make sure that your chosen provider is happy to accept the transfer as anecdotal evidence suggests that some may be unhappy about accepting such a transfer without advice.

https://www.ftadviser.com/pensions/2020/11/06/providers-still-demand-advice-on-sub-30k-db-transfers/#:~:text=AJBell requires advice on all,an execution-only service”.

The above is four years old but you might check in with AJ Bell? It may be inferred that their position is still as indicated?

https://www.ajbell.co.uk/transferring-to-us

Thank you.  Looks like AJ bell might be where we should go.  Do you know if we can transfer to a type of SIPP that isn't invested in shares or anything?
Is there such a think as a SIPP which is just like a bank account so my money won't go down like it could if it's invested ?  Thanks 🙏

You don't have to invest the money within a SIPP if you don't want.

Some providers pay interest on cash balances within a SIPP.

Remember your cash would "go down" in real terms if held in cash as inflation will gradually erode it's value.

Yes, that's what I want, a cash SIPP so I can just transfer it, then immediately withdraw 19k tax free.  We just looked on AJ website but couldn't find a cash SIPP though.  I'll go look again. 

There is no such as a "cash SIPP".

What you want is a SIPP (or personal pension or stakeholder pension, but not many of them left I don't think) and once your money is within that pension wrapper you simply leave it as cash.

That isn't a "cash SIPP" though, it's a SIPP where your money is left as cash.

And you need to check the SIPP fees to make sure you don't choose one that is sub optimal for your particular plan.

Thanks Dazed, so when I open a SIPP, do they ask me if I want to invest it or  leave it as cash ? 

Sheba42

LHW99 said:

If AJ Bell won't take it, I believe if you open a stakeholder pension (Standard Life?), they have to accept a transfer. I think someone here said you only need about £20 to open one, but you need to do it before trying to transfer. 

Once transferred, then you could move it on to AJ Bell, or another provider, if the stakeholder isn't flexible enough to do what you want.

Thanks LH, my husband is now looking at that online.  Do you know if my money can be left as cash with Standard life, rather than invested ? 

Dazed_and_C0nfused

Sheba42 said:

Dazed_and_C0nfused said:

Sheba42 said:

Dazed_and_C0nfused said:

Sheba42 said:

xylophone said:

If the value of the safeguarded benefits is under £30,000 then you are not required to take advice in respect of the transfer.

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Just make sure that your chosen provider is happy to accept the transfer as anecdotal evidence suggests that some may be unhappy about accepting such a transfer without advice.

https://www.ftadviser.com/pensions/2020/11/06/providers-still-demand-advice-on-sub-30k-db-transfers/#:~:text=AJBell requires advice on all,an execution-only service”.

The above is four years old but you might check in with AJ Bell? It may be inferred that their position is still as indicated?

https://www.ajbell.co.uk/transferring-to-us

Thank you.  Looks like AJ bell might be where we should go.  Do you know if we can transfer to a type of SIPP that isn't invested in shares or anything?
Is there such a think as a SIPP which is just like a bank account so my money won't go down like it could if it's invested ?  Thanks 🙏

You don't have to invest the money within a SIPP if you don't want.

Some providers pay interest on cash balances within a SIPP.

Remember your cash would "go down" in real terms if held in cash as inflation will gradually erode it's value.

Yes, that's what I want, a cash SIPP so I can just transfer it, then immediately withdraw 19k tax free.  We just looked on AJ website but couldn't find a cash SIPP though.  I'll go look again. 

There is no such as a "cash SIPP".

What you want is a SIPP (or personal pension or stakeholder pension, but not many of them left I don't think) and once your money is within that pension wrapper you simply leave it as cash.

That isn't a "cash SIPP" though, it's a SIPP where your money is left as cash.

And you need to check the SIPP fees to make sure you don't choose one that is sub optimal for your particular plan.

Thanks Dazed, so when I open a SIPP, do they ask me if I want to invest it or  leave it as cash ? 

That's likely yes.  I can't imagine it would be moved out of cash without your explicit authority.

Sheba42

Dazed_and_C0nfused said:

Sheba42 said:

Dazed_and_C0nfused said:

Sheba42 said:

Dazed_and_C0nfused said:

Sheba42 said:

xylophone said:

If the value of the safeguarded benefits is under £30,000 then you are not required to take advice in respect of the transfer.

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Just make sure that your chosen provider is happy to accept the transfer as anecdotal evidence suggests that some may be unhappy about accepting such a transfer without advice.

https://www.ftadviser.com/pensions/2020/11/06/providers-still-demand-advice-on-sub-30k-db-transfers/#:~:text=AJBell requires advice on all,an execution-only service”.

The above is four years old but you might check in with AJ Bell? It may be inferred that their position is still as indicated?

https://www.ajbell.co.uk/transferring-to-us

Thank you.  Looks like AJ bell might be where we should go.  Do you know if we can transfer to a type of SIPP that isn't invested in shares or anything?
Is there such a think as a SIPP which is just like a bank account so my money won't go down like it could if it's invested ?  Thanks 🙏

You don't have to invest the money within a SIPP if you don't want.

Some providers pay interest on cash balances within a SIPP.

Remember your cash would "go down" in real terms if held in cash as inflation will gradually erode it's value.

Yes, that's what I want, a cash SIPP so I can just transfer it, then immediately withdraw 19k tax free.  We just looked on AJ website but couldn't find a cash SIPP though.  I'll go look again. 

There is no such as a "cash SIPP".

What you want is a SIPP (or personal pension or stakeholder pension, but not many of them left I don't think) and once your money is within that pension wrapper you simply leave it as cash.

That isn't a "cash SIPP" though, it's a SIPP where your money is left as cash.

And you need to check the SIPP fees to make sure you don't choose one that is sub optimal for your particular plan.

Thanks Dazed, so when I open a SIPP, do they ask me if I want to invest it or  leave it as cash ? 

That's likely yes.  I can't imagine it would be moved out of cash without your explicit authority.

Ok thank you.  Now I just need to figure out whether to open a SIPP or stakeholder pension but I need to understand the difference first,  as I'm not sure how they differ. 
Really appreciate you helping  😊👍

xylophone

Yes, that's what I want, a cash SIPP so I can just transfer it, then immediately withdraw 19k tax free.  We just looked on AJ website but couldn't find a cash SIPP though.

Your pension would transfer to eg AJ Bell in cash.

Once in the SIPP you have no obligation to invest it.

You would be able to set in train taking your 25% PCLS (say £7000) and (assuming no other taxable income in this tax year) your

£12570.

You should note however that tax would very likely be deducted from the £12570 - you would need to reclaim from HMRC.

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

The balance could be left in cash and withdrawn in the following tax year.

Sheba42

xylophone said:

Yes, that's what I want, a cash SIPP so I can just transfer it, then immediately withdraw 19k tax free.  We just looked on AJ website but couldn't find a cash SIPP though.

Your pension would transfer to eg AJ Bell in cash.

Once in the SIPP you have no obligation to invest it.

You would be able to set in train taking your 25% PCLS (say £7000) and (assuming no other taxable income in this tax year) your

£12570.

You should note however that tax would very likely be deducted from the £12570 - you would need to reclaim from HMRC.

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

The balance could be left in cash and withdrawn in the following tax year.

Thanks Xylo.  That's what we think is best.  I'll take 19k before April and I'm fine with them taxing that as I'll just claim it back.  Then like you say, I'll take the other 8k after April as that will be a new tax year and therefore tax free. 👍

xylophone

You could also give Hargreaves Lansdown a ring to check on whether they will accept a sub £30,000 DB without advice.

They don't say yes but they don't say no!

https://www.hl.co.uk/pensions/transfer-to-the-sipp

 You might be able to transfer, but if the transfer value is more than £30,000, you’ll have to take advice from a regulated financial adviser. If you’d like to transfer to HL, you’ll also need to provide proof that the advice is in favour of transferring.

dunstonh

For anyone who is unclrear as to why the £30k rule exists, this thread is a very good example of why.

You could also give Hargreaves Lansdown a ring to check on whether they will accept a sub £30,000 DB without advice.

Whilst the DB scheme administrators cannot insist on advice, the receiving scheme can (with the exception of stakeholder pensions).

Sheba42

dunstonh said:

For anyone who is unclrear as to why the £30k rule exists, this thread is a very good example of why.

You could also give Hargreaves Lansdown a ring to check on whether they will accept a sub £30,000 DB without advice.

Whilst the DB scheme administrators cannot insist on advice, the receiving scheme can (with the exception of stakeholder pensions).

Do you think so, in what respect ? 

xylophone

 I'll take the other 8k after April as that will be a new tax year and therefore tax free. 👍

You could still find that tax would be deducted - once again you would need to reclaim it if so.