Aegon Flexible Pension Plan - Options
Options
akh43
Posts: 1,559 Forumite
I transferred to this plan in 2010 and the only money in it is from when I opted out of SERPS. It is in a "Distribution Accum" and my charges for last year were £261 (not sure of the percentage) The last few years it has been losing money, but now seems to be picking up a bit and I am wondering whether I should take it while it is doing good? When I have looked at leaving it there the forecasts going forward seem to be much lower than its worth now which is why I feel I should either take or move it.
I did speak to them in March on my options and they sent me a breakdown of surrender value at that time and lump sum options. They said I could take it as a small pot (or 3x £10k) or take the tax free amount and move the rest to a different fund to draw when required, paying tax at the relevant rate. At that point it was worth £25,426, on checking last night it has now increased to £27,222.
I am 60 and took early retirement in March and currently get just under £13k a year in DB work pension and pay £7.20 a month in tax.
I would prefer to take the whole amount, but know I would be hit with tax, is there anyway around this or a way to take the tax free amount, just under £7k and put the other money somewhere better? How do I find a better fund?
I did try speaking to a financial adviser earlier in the year, only on the telephone, but due to the small amount of pension they didnt seem that helpful so I didnt pursue any further.
Any advice appreciated.
I did speak to them in March on my options and they sent me a breakdown of surrender value at that time and lump sum options. They said I could take it as a small pot (or 3x £10k) or take the tax free amount and move the rest to a different fund to draw when required, paying tax at the relevant rate. At that point it was worth £25,426, on checking last night it has now increased to £27,222.
I am 60 and took early retirement in March and currently get just under £13k a year in DB work pension and pay £7.20 a month in tax.
I would prefer to take the whole amount, but know I would be hit with tax, is there anyway around this or a way to take the tax free amount, just under £7k and put the other money somewhere better? How do I find a better fund?
I did try speaking to a financial adviser earlier in the year, only on the telephone, but due to the small amount of pension they didnt seem that helpful so I didnt pursue any further.
Any advice appreciated.
Decluttter 2022⭐Declutter 2023
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Comments
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I do not think this can be the full title of the fund . For sensible comment you will need to provide the full details.It is in a "Distribution Accum"
Although projections tend to be pessimistic it is not usual it is forecasting the fund shrinking.I have looked at leaving it there the forecasts going forward seem to be much lower than its worth now
After taking the 25% tax free, the rest is taxable , regardless of when you take it. To find a better fund we need to know what the current fund is.I would prefer to take the whole amount, but know I would be hit with tax, is there anyway around this or a way to take the tax free amount, just under £7k and put the other money somewhere better? How do I find a better fund?0 -
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On the paperwork it calls it a Flexible Pension Plan.Albermarle wrote: »I do not think this can be the full title of the fund . For sensible comment you will need to provide the full details.
Although projections tend to be pessimistic it is not usual it is forecasting the fund shrinking.
After taking the 25% tax free, the rest is taxable , regardless of when you take it. To find a better fund we need to know what the current fund is.
Ok so I shouldn't be too worried. One of the reasons I was taking was I didnt like the idea of it shrinking over the years. I would probably only be putting it in ISA/savings accounts until needed.
It is the one on the link provided by Joe Crystal.Decluttter 2022⭐Declutter 20230 -
It is a standard multi asset fund in the low/medium risk category . On average it has been growing at approx. 5 % pa , which is about what you would expect . Due to inflation in real terms the growth would be about half of that.It is the one on the link provided by Joe Crystal.
On the other hand if there was a market downturn it should not go down too much.
Still not clear why the projection shows it shrinking but they can be very pessimistic in their assumptions.
Probably best to leave it where it is . Take the tax free cash when you need it ( not just because its there) and the rest will go into what is called drawdown. Leave that where it is until you need it - this will be taxable when you take it.0 -
The last few years it has been losing money
That fund has not lost money for the last few years. it did in 2018, as did most equity based funds. However, you would have to go back to 2015/16 to see a previous dip (as did most equity based funds).
A synthetic example projection using the low rate would show a loss. The mid rate tends to show near breakeven and the high rate shows growth. Your fund has been performing at or better than the high growth rate.When I have looked at leaving it there the forecasts going forward seem to be much lower than its worth now which is why I feel I should either take or move it.
So, why are you using a synthetic (as in made up) projection to make a potentially bad decision to all it a day on the pension?0
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