opting out Question
Options
eyorrs
Posts: 2 Newbie
Hi. Hope you guys can help.
I contracted out of serps from 1987 with Sun life of Canada till 2002, After which I was advised to come back into the state pension. I am 55 yrs old now, so can I take the 25% lump sum from that pot ?
Many thanks
I contracted out of serps from 1987 with Sun life of Canada till 2002, After which I was advised to come back into the state pension. I am 55 yrs old now, so can I take the 25% lump sum from that pot ?
Many thanks
0
Comments
-
Technically yes, but it depends on the terms of the policy - you need to check with the provider. You may have to transfer to a more up to date arrangement to enable this.0
-
You may wish to amend your thread title. It says opting out question. opting out is what you do if you choose not to join the occupational/workplace pension. Your question in taking benefits on your personal pension.I am 55 yrs old now, so can I take the 25% lump sum from that pot ?
Yes. But its unlikely you will be able to do that on the existing plan. It will likely need transferring to a plan that supports drawdown.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 -
It seems that you had an old "protected rights" type policy?
If so, this is now a standard DC pension.
It is unlikely that as it stands you would be offered drawdown.
However, you could consider a transfer to an arrangement that would permit drawdown, for example a SIPP.
https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Income_Drawdown_SPOT001_v1.5.pdf
http://www.hl.co.uk/pensions/drawdown/how-does-it-work
https://www.fidelity.co.uk/pension-drawdown
https://www.youinvest.co.uk/pensions-and-retirement/accessing-your-pension/drawdown0 -
You may need to transfer to a different provider who can facilitate tax free cash only withdrawals. Before you rip out the TFC just because you hit 55 think if you actually really need it, or are just doing it because it!!!8217;s there.
Might be better to keep it invested rather than pulling it out at 55 and sticking it in the bank account which is a path many sadly follow.
Might also have valuable benefits such as guaranteed annuity rates on the policy. Always worth checking in advance.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards