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partial Pension withdrawal
Hi,
Needs some advise or confirmation, I have a private pension with Scottish friendly, I've spoken with them today for advise on withdrawing partial funds under the 25% tax free rule but they've stated they do not offer this and only option is to pull the full pension fund and then re-invest what I would have remaining less what I would remove back into the stock market? Does this seem correct?
Comments
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This might be better on the pensions board.
Personal pensions these days do allow you to take the 25% tax free cash as a separate thing from taking the 75% taxable pension. But that doesn't mean your particular pension with Scottish Friendly will allow it - you'd think the people at Scottish Friendly would know what you can and can't do with their pension.
A solution may be to transfer the pension to a more modern one (a SIPP say).
But first you should clarify exactly what sort of pension you have. You say you have a private pension but that doesn't mean it is a modern personal pension. It could be an occupational pension scheme or a section 32 buy out policy. It could have features which make it expensive to transfer.
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Needs some advise or confirmation,
The board doesn't give advice on regulated areas. Just discussion and opinion.
I have a private pension with Scottish friendly, I've spoken with them today for advise on withdrawing partial funds under the 25% tax free rule but they've stated they do not offer this and only option is to pull the full pension fund and then re-invest what I would have remaining less what I would remove back into the stock market? Does this seem correct?
Quite a lot of legacy plans do not offer drawdown. So if you want to do drawdown, you're going to need to transfer it to a modern plan that offers it.
Scottish Friendly may have a modern plan that does offer it, and that could be what they're describing to you. Or you can find your own model and plan with another provider and transfer it to them.
Either way, what they are describing sounds correct.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
This might be better on the pensions board.
Moved.
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A quick look at Scottish Friendly website shows they do not offer pensions anymore, which is presumably why they do not offer any flexible withdrawal options on old existing pensions. Only option is take it all , or transfer it to another provider.
The latter option is very easy to arrange nowadays, as long as there are no special conditions attached to the pension.
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