Cash in Pension in one go for full amount

MallyGirl

[Deleted User] said:

[Deleted User] said:

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] said:

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

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. 

Report

This poster thought they understood the tax implications and are now being pursued by HMRC for nearly £60k.
https://forums.moneysavingexpert.com/discussion/6579127/withdraw-lump-sum-from-pension-br-tax-code/p1

This sort of thing is why the advice requirement exists. You will have to pay for advice because of the GAR.
It might be easier to transfer - advice still needed but you can transfer to a Stakeholder pension even with negative recommendation. You would lose the GAR and then the drawdown would be easier. Losing half of it to tax still seems bonkers but you haven't chosen to share your reasons for wanting to take such extreme action.