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  • FIRST POST
    • zolablue25
    • By zolablue25 30th Mar 18, 5:02 PM
    • 1,584Posts
    • 469Thanks
    zolablue25
    IFA for pension transfer
    • #1
    • 30th Mar 18, 5:02 PM
    IFA for pension transfer 30th Mar 18 at 5:02 PM
    Hi

    I have received notification from a former employer's pension fund regarding the winding up of the pension plan.

    If I do nothing I get put into the Deferred Pension With Annual Increases in Payment plan.

    I could opt for the Deferred Pension With No Annual Increases in Payment plan or have an Early Retirement Option of those 2.

    I don't need the money yet so the Early Retirement options are not for me.

    There is also an option for a Transfer. The Transfer Value is just above the minimum whereby I can transfer without seeking Independent Financial Advice so, if I wanted to do this, I will need to provide evidence of this advice.

    The sums involved are not massive (the deferred option with increases is approx 670 a year and without increases is about twice that) and half the payments would go to my spouse if I go first.

    I was hoping to be able to transfer the funds to a SIPP as that would be fully payable to any of my beneficiaries when I peg it but I'm concerned that the IFA costs will be prohibitive.

    Could anyone tell me a) whether I'm thinking clearly about the benefits of using a SIPP

    and/or

    b) how much I should expect to pay an IFA to enable me to make the switch?

    Thanks
Page 2
    • zolablue25
    • By zolablue25 6th Apr 18, 9:12 AM
    • 1,584 Posts
    • 469 Thanks
    zolablue25
    Its a good idea and is actually tax neutral or there abouts as any funds you pay into your new SIPP will attract tax relief thereby cancelling out any income tax you would have already paid.

    I'm not sure if its really a pension recycling issue but when I did the same thing I was always ready to state that I was investing my salary in a SIPP and spent the pension. No doubt one of the experts on the board will be along to confirm whether this is a wise precaution or unnessecary.

    Rob
    Originally posted by robber2
    Sorry to resurrect this one but can someone clarify whether I would pay NI on my pension income whilst I am still working.

    Obviously, if I'm paying tax and NI on it but only getting the tax back on any extra contributions I make to my SIPP, then I'm losing the NI part which would make this option less desirable.

    Thanks
    • PeacefulWaters
    • By PeacefulWaters 6th Apr 18, 9:14 AM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    No NI deductions from pension income.
    • zolablue25
    • By zolablue25 6th Apr 18, 10:53 AM
    • 1,584 Posts
    • 469 Thanks
    zolablue25
    Thanks PW. Most helpful
    • zolablue25
    • By zolablue25 14th Apr 18, 4:10 PM
    • 1,584 Posts
    • 469 Thanks
    zolablue25
    Sorry guys but I've got another question regarding this pension plan. The plan is due to exit PPF assessment in October and this is when the plan will start paying out if I choose not to defer it until I'm 60.

    If I opt to take the Tax free cash sum of approximately 6K will this cause any issues with MPAA? I must admit, I'm a little confused regarding the rules for MPPA.

    Thanks
    Last edited by zolablue25; 15-04-2018 at 1:36 PM.
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