SERPS Former Protected Rights with Benefits Pot
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KingKenny
Posts: 242 Forumite
I just got an annual pension pot statement from the Pru.
Its a Former Protected Rights with Benefits Pot. It's called a With Profits Fund.
I opted out of SERPS in the early 90's. In my 20's.
My estimated transfer value of this pot as of today is £24,200.00
It was £22k last year. Big yield for one year...£2200
It estimates I can take £9340 tax free in 2033. So 25% of the pot value in 2033...
Can I ask. As the money is from NI contributions as I opted out of the second state pension. I pay no more money into this pot. I have no other pension pots. I have never paid any money into this pension pot.
Can I take 4 equal lump sums, one every year for four years starting in 2033 until the pot has gone.
I don't want an annuity you see. I know I will only get 25% of each lump sum tax free. But my only income will be any handouts from the state in 2033.... So state pension if there is one then.
Its a Former Protected Rights with Benefits Pot. It's called a With Profits Fund.
I opted out of SERPS in the early 90's. In my 20's.
My estimated transfer value of this pot as of today is £24,200.00
It was £22k last year. Big yield for one year...£2200
It estimates I can take £9340 tax free in 2033. So 25% of the pot value in 2033...
Can I ask. As the money is from NI contributions as I opted out of the second state pension. I pay no more money into this pot. I have no other pension pots. I have never paid any money into this pension pot.
Can I take 4 equal lump sums, one every year for four years starting in 2033 until the pot has gone.
I don't want an annuity you see. I know I will only get 25% of each lump sum tax free. But my only income will be any handouts from the state in 2033.... So state pension if there is one then.
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Comments
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As the money is from NI contributions as I opted out of the second state pension.
You didnt opt out. You contracted out. Opt out has a different meaning. Commonly mixed up though.Can I take 4 equal lump sums, one every year for four years starting in 2033 until the pot has gone.
Yes you can as long as you are over age 57 (55 now but slated to go to 57 by then - may or may not happen).
It may not be the best option but it is one of the number of options available.But my only income will be any handouts from the state in 2033.... So state pension if there is one then.
If you go for any form of means-tested benefits after blowing your pension like that, they may treat it as deprivation of assets and reduce your benefits.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 -
You are now around age 51? You contracted out into a personal pension.
Are you employed?
If so, does your employer not provide a pension scheme?
Have you obtained a new state pension statement?
https://www.gov.uk/check-state-pension
You propose taking the Pru pension when you are 66?
Under current rules you could take 25% tax free when you commence the pension and draw down the balance as best suits your circumstances.
You could also opt for
https://www.pensionwise.gov.uk/en/take-cash-in-chunks
You might find that the Pru would not facilitate drawdown - in that case you would transfer to another provider.0 -
You didnt opt out. You contracted out. Opt out has a different meaning. Commonly mixed up though.
Yes you can as long as you are over age 57 (55 now but slated to go to 57 by then - may or may not happen).
It may not be the best option but it is one of the number of options available.
If you go for any form of means-tested benefits after blowing your pension like that, they may treat it as deprivation of assets and reduce your benefits.
Thanks for the reply...
Me and my mate, same age, both work minimum wage; same situation really, not a pot to p*ss in..
I contracted out of SERPS in 1989, now have a pot in total for £24k. Growing very nicely, 9% last year.....
He never opted out of SERPS.
At ages between 55 and 66 I can withdraw £6k a year or more dependent on growth for four years. Then not have a pot to !!!! in.
He still has nothing, but we both receive the same state pension at 66.
Seems to good to be true. I guess if I leave it until I am 66, withdraw £6k a year or more until I am 69, the pot will have grown somewhat, and it will not effect my state pension?
At 66 living on state pension alone will be tough, its why I was going to drawdown for four years, by 70, well I will be popped off my perch...
Thanks again for your extremely informative reply...0 -
I am due my state pension soon and have full NI contributions, one of my past employers contracted me out for a few years, that pension was commuted post divorce and I got 40%.
Do I get a serps pension? Why did my employer contract me out ? If im on the losing side can I complain to anyone?0 -
You are now around age 51? You contracted out into a personal pension.
You propose taking the Pru pension when you are 66?
Under current rules you could take 25% tax free when you commence the pension and draw down the balance as best suits your circumstances.
You could also opt for
https://www.pensionwise.gov.uk/en/take-cash-in-chunks
You might find that the Pru would not facilitate drawdown - in that case you would transfer to another provider.
Thankyou for the reply...0 -
Me and my mate, same age, both work minimum wage;
Is your employer providing a pension?
https://www.gov.uk/workplace-pensions
Have you and your mate not joined the pension scheme?0 -
I am due my state pension soon
Have you obtained a state pension statement? https://www.gov.uk/check-state-pension
What exactly does it say?0 -
The type of payment you refer to (where 25% of each payment is tax free) is called UFPLS (uncrystallised funds pension lump sum). As long as the provider offers that sort of payment, there is no reason you cannot use it.
Remember your annual statement just shows illustrative values, there is no guarantees. In fact, I will guarantee you that the figure by then will be different from the illustraive value you have been given!0 -
Just wondering.
If you were claiming full state pension. But you had say 30k in a private pension pot, yet you were Not receiving any income from this private pension pot as it was still invested. Would this pot of money invested in a private pension pot effect how much state pension you were awarded. Is it classed as savings or shares or investments.
Also in one particular month or year, if you drew down 25% of this private pension pot while receiving full state pension. Would this drawdown be classed as additional income so reduce your state pension for that month or year.....0 -
The type of payment you refer to (where 25% of each payment is tax free) is called UFPLS (uncrystallised funds pension lump sum). As long as the provider offers that sort of payment, there is no reason you cannot use it.
Remember your annual statement just shows illustrative values, there is no guarantees. In fact, I will guarantee you that the figure by then will be different from the illustraive value you have been given!
Cheers buddy. Thanks for the reply.0
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