Cash in Pension in one go for full amount

[Deleted User]

Hi 
I wish to cash in my pension in full. I was informed by my pension company that I need to get financial advice.  The financial advisor told me to deal direct with my pension company as the would not give advice to cash in all in one go and neither would any other advisors.  He also informed me that it is possible to do and I need t get the relative forms.  Could someone advise what forms I should be asking for.  My pension company are not that helpful and I need to do by the end of this financial year.  Even though they clearly offer a lump sum on the letter, they are not happy to release.

Cobbler_tone

Hey cat person,
You need some expensive financial advice if your pension is worth over £30,000.

There will be more questions than answers coming your way! 

FlorayG

These are the people you need to speak to - it's free because government subsidised https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise
They will tell you the ins and outs of taking a lump sum ( I took the lump sum in the end) but they will not advise you on WHAT you should decide

Keep_pedalling

How much is this pension?

dunstonh

The financial advisor told me to deal direct with my pension company as the would not give advice to cash in all in one go and neither would any other advisors. 

I would agree with that unless you were referring to one pension out of many and it was part of tax efficient planned process.

 He also informed me that it is possible to do and I need t get the relative forms.
Could someone advise what forms I should be asking for.  My pension company are not that helpful and I need to do by the end of this financial year. 

All providers that cater for full UFPLS will do it, but their processes are provider-specific.  Some will do it online. Some will have forms.  Some will do it over the phone.

Even though they clearly offer a lump sum on the letter, they are not happy to release.

They are neither happy or unhappy.  They don't think that way.
If they offer UFPLS and you do not have safeguarded benefits then they will do it.

HOWEVER....

I was informed by my pension company that I need to get financial advice.

....that suggests you have safeguarded benefits on a pension over £30,000 in value.    If that is the case, you would need advice from an IFA to carry out the transaction.      If you had no safeguarded benefits, then advice is not required and they would do it.

What safeguarded benefits do you have?
if its a guaranteed annuity rate (GAR) then most IFA firms can advise you (most FA firms cannot).
If its GMP or another safeguarded benefit then you are looking at closer to 1 in 10 advisers able to advise you.

Overriding a safeguarded benefit is a very high risk transaction.  And you want 100% UFPLS which is a very high risk transaction.     Put the two together and you have an extremely high risk transaction, which is way most advisers will want to steer clear of it.

What are the safeguarded benefits you have?
what is the fund value?

edit added:    And just to confirm, this is a defined contribution pension and not a defined benefit scheme?  

p00hsticks

Cobbler_tone said:

Hey cat person,
You need some expensive financial advice if your pension is worth over £30,000.

Only if it's a Defined Benefit pension or there are some safeguarded  benefits - it's not clear from the OP whether this is the case or not.  

Albermarle

OP
You need to clarify what type of pension it is.

Defined Benefit 
or Defined Contribution

Pension basics | Help with pension basics | MoneyHelper

DRS1

[Deleted User] said:

Hi 
I wish to cash in my pension in full. I was informed by my pension company that I need to get financial advice.  The financial advisor told me to deal direct with my pension company as the would not give advice to cash in all in one go and neither would any other advisors.  He also informed me that it is possible to do and I need t get the relative forms.  Could someone advise what forms I should be asking for.  My pension company are not that helpful and I need to do by the end of this financial year.  Even though they clearly offer a lump sum on the letter, they are not happy to release.

I think you will have gathered by now that what you want to do is probably not a good idea
If nothing else it will give you a large tax bill.
It may cost you some valuable benefits.
The only place you can get the form(s) you need is the pension company.  Maybe you can get them online or maybe you have to call the company.  They may have a process they need to go through before they even send you the forms.  If you are in a hurry then call them asap.  If they are anything like Aviva then they give themselves 10 days to send out a letter.
If you have not got the advice the pension company say you need they may refuse to pay out the benefits until you have had it - given some of the comments up above if you call them you should ask them why they think you need the advice.
Of course you should also think about why you need the money and if you can get it some other way.

Marcon

[Deleted User] said:

Hi 
I wish to cash in my pension in full. I was informed by my pension company that I need to get financial advice.  The financial advisor told me to deal direct with my pension company as the would not give advice to cash in all in one go and neither would any other advisors.  He also informed me that it is possible to do and I need t get the relative forms.  Could someone advise what forms I should be asking for.  My pension company are not that helpful and I need to do by the end of this financial year.  Even though they clearly offer a lump sum on the letter, they are not happy to release.

Not sure everyone who has answered thus far and told OP they '(might) need advice' spotted this. 

OP, as already suggested, go back to your pension provider and ask them exactly which features of your pension mean that you must take advice before you can cash in the pension in full. Until you know that, you're a bit stuck. Your pension company will need to supply the relevant forms. If they won't, ask them why not.

[Deleted User]

dunstonh said:

The financial advisor told me to deal direct with my pension company as the would not give advice to cash in all in one go and neither would any other advisors. 

I would agree with that unless you were referring to one pension out of many and it was part of tax efficient planned process.

 He also informed me that it is possible to do and I need t get the relative forms.
Could someone advise what forms I should be asking for.  My pension company are not that helpful and I need to do by the end of this financial year. 

All providers that cater for full UFPLS will do it, but their processes are provider-specific.  Some will do it online. Some will have forms.  Some will do it over the phone.

Even though they clearly offer a lump sum on the letter, they are not happy to release.

They are neither happy or unhappy.  They don't think that way.
If they offer UFPLS and you do not have safeguarded benefits then they will do it.

HOWEVER....

I was informed by my pension company that I need to get financial advice.

....that suggests you have safeguarded benefits on a pension over £30,000 in value.    If that is the case, you would need advice from an IFA to carry out the transaction.      If you had no safeguarded benefits, then advice is not required and they would do it.

What safeguarded benefits do you have?
if its a guaranteed annuity rate (GAR) then most IFA firms can advise you (most FA firms cannot).
If its GMP or another safeguarded benefit then you are looking at closer to 1 in 10 advisers able to advise you.

Overriding a safeguarded benefit is a very high risk transaction.  And you want 100% UFPLS which is a very high risk transaction.     Put the two together and you have an extremely high risk transaction, which is way most advisers will want to steer clear of it.

What are the safeguarded benefits you have?
what is the fund value?

edit added:    And just to confirm, this is a defined contribution pension and not a defined benefit scheme?  

Thank you for the advice, it is a GAR.  I would say its a defined contribution pension, as I have always paid a monthly amount, the value is approxima

[Deleted User]

Sorry - the value is approximate £300,000.00. The pension company are insisting I get financial advice confirmation form signed.  Even though no Financial advisor to date will agree to do this, due to me taking the option of a one lump cash payment.  Frustrating that I cannot access my money.  I understand the tax implications.