IFA's or direct to pension provider

beechnuts

I need to release some capital from a pension I stopped paying into in 2002 am I best going through an IFA or contacting the pension provider direct (CIS)?

jamesd

Are you 50 or older? 55 or older? Are you otherwise entitled to take pension benefits now (perhaps a sporting pension starting earlier)? Was it an employer's scheme that you left within a couple of years of starting?

Those are the main was in which it may be possible to get some of the money from the pension.

beechnuts

I am 54 years old and the pension was taken out in 1993 - I was self employed so it is not an employer's scheme. The value of the pension fund is approx £23,500.

EdInvestor

You can take 25% in tax free cash, and the rest must either be used to buy an annuity or put into "income drawdown" , where it can be left to grow if you don't need an income until later.

You can get an idea about annuity rates here: https://www.fsa.gov.uk/tables

If you want to do drawdown, you will need to move the pension to a SIPP.

Suitable low cost providers are

https://www.sippdeal.co.uk
https://www.h-l.co.uk
https://www.alliancetrust.co.uk

You need an IFA to do the annuity. To move to a SIPP, you first need to open the SIPP account and then instruct the provider to pay out the Tax free cash and move the remainder to the SIPP.

dunstonh

If you want to do drawdown, you will need to move the pension to a SIPP.

Or a personal pension that allows it.

CIS wont do drawdown. Some of the older CIS plans have guaranteed annuity rates or guaranteed basic annuities. Although these typically have zero bonus rate so a proper analysis needs to take place on what you will lose by commencing the pensions early.

If you can do your own analysis then you dont need an IFA.

Income drawdown is considered to be a high risk transaction. So if you do it yourself, make sure you know the risks and they do not concern you.

Retired_I.F.A.

EdInvestor wrote: »

If you want to do drawdown, you will need to move the pension to a SIPP.

LOL some people never learn.



Hows the knitting going Ed