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    • Crabby
    • By Crabby 8th Mar 18, 12:52 PM
    • 740Posts
    • 182Thanks
    Crabby
    Stakeholder pension
    • #1
    • 8th Mar 18, 12:52 PM
    Stakeholder pension 8th Mar 18 at 12:52 PM
    I'm over 55 and have a Stakeholder pension pot of just over 20k. My plan was to take the 25% now, then Drawdown and take a yearly payment to take me up to my tax allowance till either it runs out or I reach State Pension Age (then I'll have to pay tax on what's left).
    But My Pensions provider won't let me, they have a 50k lower limit on Drawdowns. I can transfer the pension at no cost, so the questions are;
    Can I do as I've mentioned above with a 20k pot?
    If so which providers will let me?
    If not, what's the best way of getting the money?

    This pension is not one I have to rely on for the rest of my life, I have other pensions/savings/investments for that.
    Winner winner, Chicken dinner.
Page 1
    • dunstonh
    • By dunstonh 8th Mar 18, 12:58 PM
    • 92,572 Posts
    • 59,876 Thanks
    dunstonh
    • #2
    • 8th Mar 18, 12:58 PM
    • #2
    • 8th Mar 18, 12:58 PM
    I suspect this is the reason why currently ISA accounts don't pay very well, because they have to have to staff transfer departments who push cheques around and chase providers when they lose them.
    Plus stakeholder pensions dont do drawdown. So, you would need to transfer internally with them anyway.

    Can I do as I've mentioned above with a 20k pot?
    yes.

    If so which providers will let me?
    most of the DIY providers will on their modern plans.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • xylophone
    • By xylophone 8th Mar 18, 5:18 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #3
    • 8th Mar 18, 5:18 PM
    • #3
    • 8th Mar 18, 5:18 PM
    You might consider a transfer to a HL SIPP.

    You could take the 25% PCLS and leave the balance in cash ( no charge for this) to draw down over the next few years as appropriate.

    http://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+SIP&gcl id=EAIaIQobC!!!!43Y0p3d2QIV55XtCh1o2AC6EAAYASAAEgK AxfD_BwE
    • Brynsam
    • By Brynsam 8th Mar 18, 6:21 PM
    • 919 Posts
    • 604 Thanks
    Brynsam
    • #4
    • 8th Mar 18, 6:21 PM
    • #4
    • 8th Mar 18, 6:21 PM
    There may be no charge to have your investment in cash, but what will you earn on it? No indication that HL pays interest, so a guaranteed loss of capital value, which isn't much of a winner in my book, even with today's low interest rates.
    • Crabby
    • By Crabby 9th Mar 18, 9:24 AM
    • 740 Posts
    • 182 Thanks
    Crabby
    • #5
    • 9th Mar 18, 9:24 AM
    • #5
    • 9th Mar 18, 9:24 AM
    I was thinking about going the HL SIPP route, as I have been doing the 2880 and have an account. How would putting the Stakeholder money in affect it?
    As for losing money, my investments are down several K since the new year, (hopefully they'll regain that and more, by the time I want to spend them) so 16k in cash isn't going to lose as much. Plus I could put it in some low risk funds to try to keep its value.
    Winner winner, Chicken dinner.
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