Is it worth transferring my small pot 25k

farmboy91

Hi, I wish take all of my 25k
pension pot, in the next two months 
i am currently with the prudential 
is there much to be gained financially by transferring it to another policy 
bearing in mind I wish to withdraw the whole amount very soon after transferring as I have health issues 

thank you in advance 

DE_612183

If you take the whole £25k - then one quarter will be tax free - the rest will be taxed at either 20% or 40% depending on what other income you'll have for the rest of the year.

Transferring to another pension pot will make no difference to that.

Marcon

farmboy91 said:

Hi, I wish take all of my 25k
pension pot, in the next two months 
i am currently with the prudential 
is there much to be gained financially by transferring it to another policy 
bearing in mind I wish to withdraw the whole amount very soon after transferring as I have health issues 

thank you in advance 

Forgive me for 'answering' a question with a question, but it could be important. Do you expect to work again and make further contributions and/or have employer contributions to any pension scheme in the future?

Albermarle

It could be worth it because we often see on here complaints that The Pru charge 3% for moving into a pension into drawdown, when other providers do not charge.
Whether they charge that for taking it all out as a lump sum, I do not know, but worth checking. 

ChippyIbe

If the OP wants to transfer then they might want to get on with it; from what I've read a cash-based transfer can take around six weeks. Longer if they want to stay in the current funds.

Disclaimer: I'm a newbie to such things, so just giving food for thought from what others have suggested.

af1963

Do you need *all* of the £25k during this tax year ? If not, you'd possibly pay less tax if you left some of it until next tax year.  Depends on what other income you'll have this year and next year.

Albermarle

ChippyIbe said:

If the OP wants to transfer then they might want to get on with it; from what I've read a cash-based transfer can take around six weeks. Longer if they want to stay in the current funds.

Disclaimer: I'm a newbie to such things, so just giving food for thought from what others have suggested.

ChippyIbe said:

If the OP wants to transfer then they might want to get on with it; from what I've read a cash-based transfer can take around six weeks. Longer if they want to stay in the current funds.

Disclaimer: I'm a newbie to such things, so just giving food for thought from what others have suggested.

It varies quite a lot depending on the provider.
Six weeks for a cash transfer would be on the long side. Typically would be a couple of weeks and I had one that took only 48 hours.
Transferring in specie ( staying in the same funds) does take longer.