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  • FIRST POST
    • aayush
    • By aayush 17th Jun 19, 6:25 AM
    • 814Posts
    • 29Thanks
    aayush
    Pension Company Advised not able to draw down
    • #1
    • 17th Jun 19, 6:25 AM
    Pension Company Advised not able to draw down 17th Jun 19 at 6:25 AM
    HI
    I have been advised I can take the full amount but will need to pay tax on the balance after taking 25% tax-free why is the company been so difficult and if want to transfer will charge me
    any ideas best for me
Page 1
    • SeniorSam
    • By SeniorSam 17th Jun 19, 6:45 AM
    • 1,297 Posts
    • 668 Thanks
    SeniorSam
    • #2
    • 17th Jun 19, 6:45 AM
    • #2
    • 17th Jun 19, 6:45 AM
    Without knowing which company, perhaps some companies do not have the facilities for Drawdown. Not a problem, contact another platform and transfer to them. Then you can arrange whatever drawdown facility you need.
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, so my comments are just meant to be helpful.
    • tacpot12
    • By tacpot12 17th Jun 19, 7:25 AM
    • 2,589 Posts
    • 2,330 Thanks
    tacpot12
    • #3
    • 17th Jun 19, 7:25 AM
    • #3
    • 17th Jun 19, 7:25 AM
    How much will they charge you to transfer out?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • Albermarle
    • By Albermarle 17th Jun 19, 8:03 AM
    • 986 Posts
    • 604 Thanks
    Albermarle
    • #4
    • 17th Jun 19, 8:03 AM
    • #4
    • 17th Jun 19, 8:03 AM
    I have been advised I can take the full amount but will need to pay tax on the balance after taking 25% tax-free
    Can you just clarify:
    Do you want to take the 25% tax free and leave the 75% invested , to be taken later ?
    OR do you want to take 100% of the pension now ?
    • AnotherJoe
    • By AnotherJoe 17th Jun 19, 8:11 AM
    • 14,895 Posts
    • 17,898 Thanks
    AnotherJoe
    • #5
    • 17th Jun 19, 8:11 AM
    • #5
    • 17th Jun 19, 8:11 AM
    HI
    I have been advised I can take the full amount but will need to pay tax on the balance after taking 25% tax-free why is the company been so difficult and if want to transfer will charge me
    any ideas best for me
    Originally posted by aayush
    If you transfer to Hargreaves Lansdown at the moment I think they have a deal going whereby they will pay the transfer fees. As per post above you need to provide more info on what exactly it is you want to do, and also the amounts, in most cases taking all the money out in one go is the wrong thing to do.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Marcon
    • By Marcon 17th Jun 19, 10:18 AM
    • 1,083 Posts
    • 828 Thanks
    Marcon
    • #6
    • 17th Jun 19, 10:18 AM
    • #6
    • 17th Jun 19, 10:18 AM
    HI
    I have been advised I can take the full amount but will need to pay tax on the balance after taking 25% tax-free why is the company been so difficult Just because the can't do what you want doesn't mean they are being difficult - you are asking for something your type of pension contract doesn't permit and if want to transfer will charge me How much? Again, if that's the type of contract you have, all they are doing is sticking to the agreed terms
    any ideas best for me
    Originally posted by aayush
    What's best for you? No idea with virtually no information.
    • xylophone
    • By xylophone 17th Jun 19, 11:45 AM
    • 30,117 Posts
    • 18,459 Thanks
    xylophone
    • #7
    • 17th Jun 19, 11:45 AM
    • #7
    • 17th Jun 19, 11:45 AM
    I have been advised I can take the full amount but will need to pay tax on the balance after taking 25% tax-free why is the company been so difficult and if want to transfer will charge me
    You have a pension with a certain provider.

    Are you saying that your provider does not offer drawdown (the ability to take the PCLS and leave the balance invested/take income as required)?

    If they don't offer drawdown and this is what you require, then you will need to transfer to a provider that does?

    What charge would be made to transfer out?

    You are aware that any money withdrawn from the pension over and above the PCLS is taxable as income in the year of receipt?

    https://www.pensionwise.gov.uk/en

    You might want to book an appointment with the above?
    • aayush
    • By aayush 17th Jun 19, 6:42 PM
    • 814 Posts
    • 29 Thanks
    aayush
    • #8
    • 17th Jun 19, 6:42 PM
    • #8
    • 17th Jun 19, 6:42 PM
    Hi
    1 )the charge around £1250 to do transfer
    2) company is Phoenix
    3) I want to take the tax-free amount and am aware the balance is taxable
    • AnotherJoe
    • By AnotherJoe 17th Jun 19, 6:45 PM
    • 14,895 Posts
    • 17,898 Thanks
    AnotherJoe
    • #9
    • 17th Jun 19, 6:45 PM
    • #9
    • 17th Jun 19, 6:45 PM
    And are you saying that Phoenix wont just let you take the 25% TFLS?
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • xylophone
    • By xylophone 17th Jun 19, 7:39 PM
    • 30,117 Posts
    • 18,459 Thanks
    xylophone
    https://forums.moneysavingexpert.com/showthread.php?p=75727771#post75727771

    Is this the pension in question?

    Phoenix will not permit you just to take the lump sum?

    Or do you want to take the whole of the pension and pay any tax due on the "income"?

    Will Phoenix permit this without penalty?

    If you do this Phoenix will almost certainly tax the "income" on a month one basis which may well mean that you have not paid the correct amount.

    https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/

    If Phoenix cannot offer the options you require then you will need to transfer out.

    Transferring to a provider who would meet the transfer fees would lessen the pain?
    • aayush
    • By aayush 17th Jun 19, 8:09 PM
    • 814 Posts
    • 29 Thanks
    aayush
    And are you saying that Phoenix wont just let you take the 25% TFLS?
    Originally posted by AnotherJoe
    yes that right
    Last edited by aayush; 17-06-2019 at 8:09 PM. Reason: spelling
    • AnotherJoe
    • By AnotherJoe 17th Jun 19, 9:32 PM
    • 14,895 Posts
    • 17,898 Thanks
    AnotherJoe
    yes that right
    Originally posted by aayush

    So then investigate providers who will pay towards the transfer fees, I'm sure I've seen an ad from HL there may be others.
    Whether they are best depends what your plans are with the rest of the money.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Albermarle
    • By Albermarle 18th Jun 19, 8:48 AM
    • 986 Posts
    • 604 Thanks
    Albermarle
    So then investigate providers who will pay towards the transfer fees, I'm sure I've seen an ad from HL there may be others.
    Fidelity will pay up to £500 refund of transfer fees. Until recently they also had a cashback offer for transfers but it has just expired.
    HL do not refund transfer fees but they have a current cashback offer.
    • Thrugelmir
    • By Thrugelmir 18th Jun 19, 9:30 AM
    • 63,694 Posts
    • 56,399 Thanks
    Thrugelmir
    As a business model Phoenix buys up closed mortgage books and runs them down. As simple as that. If you wish to anything other than what your original policy contract specifies you'll need to move the pot to another provider.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
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