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  • FIRST POST
    • olgadapolga
    • By olgadapolga 5th Feb 18, 10:07 PM
    • 831Posts
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    olgadapolga
    Drawdown?
    • #1
    • 5th Feb 18, 10:07 PM
    Drawdown? 5th Feb 18 at 10:07 PM
    Hi,

    After some advice if anyone can spare the time, please

    My husband is aged 56 and has a small pension pot that he wishes to access. We've been through the options and he wants to put it into drawdown so he can access it as and when.

    The pension is just under 60k and he wants to take the 25% tax-free amount to put toward a house purchase. The rest he plans to take in smaller amounts, within his personal allowance each year until it's gone, basically. We do have other pension plans in place for our retirement when the time comes in a few years.

    My husband is totally risk-adverse, having been hit a couple of times in the past. He's far happier keeping his funds in low risk options and expects low returns as a result but that is what he's happiest with.

    We've been in touch with some local IFAs who don't want to know as the amount is less than they will deal with. That's fine but we have no idea where to start with it in order to get the money into a place whereby he can start the drawdown. I'm not terribly clued up on it, my husband is even worse and we're a bit stuck due to the lack of professional advice available to us.

    Can anyone give us any pointers as to where to go with this, please?
Page 1
    • Clifford_Pope
    • By Clifford_Pope 5th Feb 18, 10:14 PM
    • 3,569 Posts
    • 3,700 Thanks
    Clifford_Pope
    • #2
    • 5th Feb 18, 10:14 PM
    • #2
    • 5th Feb 18, 10:14 PM

    My husband is totally risk-adverse,
    Originally posted by olgadapolga

    He can't be totally risk-averse if he is going for drawdown.

    The only totally risk-averse option is an annuity, with inflation-linking.
    • xylophone
    • By xylophone 5th Feb 18, 10:19 PM
    • 25,182 Posts
    • 14,832 Thanks
    xylophone
    • #3
    • 5th Feb 18, 10:19 PM
    • #3
    • 5th Feb 18, 10:19 PM
    Is this a pension with "safeguarded benefits"?

    https://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/
    • olgadapolga
    • By olgadapolga 6th Feb 18, 10:23 AM
    • 831 Posts
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    olgadapolga
    • #4
    • 6th Feb 18, 10:23 AM
    • #4
    • 6th Feb 18, 10:23 AM
    No, it isn't one with safeguarded benefits.
    • Malthusian
    • By Malthusian 6th Feb 18, 11:06 AM
    • 3,924 Posts
    • 6,129 Thanks
    Malthusian
    • #5
    • 6th Feb 18, 11:06 AM
    • #5
    • 6th Feb 18, 11:06 AM
    Is the house you're purchasing for yourself or for an investment? If the latter, this further contradicts the idea that he's totally risk-averse as a single residential property is extreme high risk (off the top of the traditional risk scale where diversified emerging markets funds are considered very high risk).

    However, that's by the by as he plans to take 15k immediately and then the rest of the fund in 11.5k increments until it's all gone in 5 years. Given the timescale it would be a gamble to invest in anything other than cash.
    • AlanP
    • By AlanP 6th Feb 18, 1:16 PM
    • 1,170 Posts
    • 842 Thanks
    AlanP
    • #6
    • 6th Feb 18, 1:16 PM
    • #6
    • 6th Feb 18, 1:16 PM
    Is your husband still contributing to a pension scheme?

    the amount you can contribute in the future is limited if you take anything over the 25% TFLS.

    Also be aware of Recycling Rules if ongoing contributions will be happening.
    • olgadapolga
    • By olgadapolga 6th Feb 18, 1:52 PM
    • 831 Posts
    • 986 Thanks
    olgadapolga
    • #7
    • 6th Feb 18, 1:52 PM
    • #7
    • 6th Feb 18, 1:52 PM
    Is the house you're purchasing for yourself or for an investment? If the latter, this further contradicts the idea that he's totally risk-averse as a single residential property is extreme high risk (off the top of the traditional risk scale where diversified emerging markets funds are considered very high risk).

    However, that's by the by as he plans to take 15k immediately and then the rest of the fund in 11.5k increments until it's all gone in 5 years. Given the timescale it would be a gamble to invest in anything other than cash.
    Originally posted by Malthusian
    The house is for us to live in as we are currently renting a property.

    As you surmise, I think that he just wants to get to it asap once he's taken the 15k.

    Is your husband still contributing to a pension scheme?

    the amount you can contribute in the future is limited if you take anything over the 25% TFLS.

    Also be aware of Recycling Rules if ongoing contributions will be happening.
    He isn't contributing to a plan at present and has no intention of doing so in the future.
    • xylophone
    • By xylophone 6th Feb 18, 2:00 PM
    • 25,182 Posts
    • 14,832 Thanks
    xylophone
    • #8
    • 6th Feb 18, 2:00 PM
    • #8
    • 6th Feb 18, 2:00 PM
    He might consider a transfer to a SIPP with Hargreaves Lansdown - he can take the PCLS and commence drawdown - there is no charge for holding cash.

    http://www.hl.co.uk/pensions/sipp

    He could ring to discuss - they are helpful on the phone and their service is efficient.
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