Cashing in your Pension pot....?

[cardiac arrest]

probably a good idea this one, announced in Osbornes' Budget statement..

But, while it's early days it is unclear which pension schemes will qualify for this...unless anyone knows ?

I'm pretty sure the Section 32 buy out schemes will not qualify though (just a feeling)..These had guaranteed pay outs which are significantly higher than the accumulated bonuses would ever have given (8.5% per year guaranteed increases no less). So it's would seem that despite the 'pot' being around £50,000 it would never be enough to buy the guaranteed pension the scheme provided for...hence, no surplus and not likely to get anything better anywhere else, and as such I can't see an advantage in taking the cash and spending it...

Any better info would be appreciated..

[cardiac arrest]

Re: Cashing in your Pension pot....?

any pension experts ?

[pompeyfaith]

Re: Cashing in your Pension pot....?

I am not entirely sure Osborne's reasons are good ones especially on the taxation front like everything solid pensions advice is a must as you maybe opening your pot up to a wad of tax to pay so that will need balancing with an annuity

[cardiac arrest]

Re: Cashing in your Pension pot....?

Am sure it is just a money making scheme really for Ozzi...but...many people with adequate pensions already plus a defined benefit scheme will be thinking about it. In fact i had a quick look on the pensions service website and buy out schemes are included in 'defined benefit' schemes, so who knows if it will be an option...

One thing though, and this was pointed out on the other thread...many of us with buy out schemes have seen no bonuses added for years because the guaranteed pension was already higher than the returns achieved from insurance company investments...although there is a final bonus (maybe). My point though is that if now the 'pot' is cashable then it begs the question as to whether the fund should have grown with annual bonuses after all ? I might ask Aviva...

[lookingforward]

Re: Cashing in your Pension pot....?

I took the 25% I was allowed to when I was 50 the rest giving me a (very small) monthly amount. Do these new rules mean that next April I can get my hands on the rest of the pot ? I could certainly do more good with that in one load than I can with the monthly amount

[vossy]

Re: Cashing in your Pension pot....?

I am awaiting the small print on this one, I held off taking the 25% and an annuity simply because they are worth jack shit, when I signed my pension plan in the year dot I was told I could get my pension back in one lump sum anyway or opt for a lifetime payment, then gvt comes along and puts their pennies worth in saying that I can't, now they are saying I can again and I will assuming I am not going to be wailed with 80% tax or something along those lines.
I want to enjoy my money my way and not the way these multi millionaires think I should, if I don't want to put anything away for when I am decrepit then that's my affair and if I am skint then so what? I have paid more than enough in taxes through my life so let the state look after me if it comes to it.
I do like the look of those Lamborghini though.

[helmsman]

Re: Cashing in your Pension pot....?

I took the 25% I was allowed to when I was 50 the rest giving me a (very small) monthly amount. Do these new rules mean that next April I can get my hands on the rest of the pot ? I could certainly do more good with that in one load than I can with the monthly amount

ME TOO

[cardiac arrest]

Re: Cashing in your Pension pot....?

I took the 25% I was allowed to when I was 50 the rest giving me a (very small) monthly amount. Do these new rules mean that next April I can get my hands on the rest of the pot ? I could certainly do more good with that in one load than I can with the monthly amount

As far as I know it only applies to new , but you could always ask your provider ?
I have been told by Aviva that the buy out policies (Section 32) are not included in this scheme because they are 'defrined benefit' schemes and not 'defined contribution' schemes ..ie a final salary type of scheme..although to be honest, I'm not sure all the decisions have been made yet.. We'll have to wait for the small print...

[lookingforward]

Re: Cashing in your Pension pot....?

As far as I know it only applies to new , but you could always ask your provider ?
I have been told by Aviva that the buy out policies (Section 32) are not included in this scheme because they are 'defrined benefit' schemes and not 'defined contribution' schemes ..ie a final salary type of scheme..although to be honest, I'm not sure all the decisions have been made yet.. We'll have to wait for the small print...

Thought it was too good to be true, but I'll ask at some stage this year anyway. Give them time to understand whats what themselves first

[lookingforward]

Re: Cashing in your Pension pot....?

According to the telegraph

What if I have already taken a pension income?
The millions of savers who have purchased an annuity already will be tied to that contract. They will be trapped in the old system

[lookingforward]

Re: Cashing in your Pension pot....?

Yes the more i read the more it's plain that if you've already taken an annuity (unless VERY recently) then you're stuck with it and you can't get your hands on the pot. There are a couple of exceptions such as draw downs and fixed term (I think) one's but most people with normal annuities are up the creek without a paddle.
I'd be quite happy to give them back what they've paid me in the 7 years I've had the annuity and stop anymore payments as long as I could have the rest in one lump to do with as I choose

[cardiac arrest]

Re: Cashing in your Pension pot....?

Yes the more i read the more it's plain that if you've already taken an annuity (unless VERY recently) then you're stuck with it and you can't get your hands on the pot. There are a couple of exceptions such as draw downs and fixed term (I think) one's but most people with normal annuities are up the creek without a paddle.
I'd be quite happy to give them back what they've paid me in the 7 years I've had the annuity and stop anymore payments as long as I could have the rest in one lump to do with as I choose

Are you tied to your current provider, or do you have an option to ask for a transfer value and look for quotes elsewhere ?

I don't know much about this aspect but I'd be surprised if the annuity purchase was only a one off option...if you can shop around and transfer again maybe you could cash in ? Worth asking I suppose.

[lookingforward]

Re: Cashing in your Pension pot....?

Thanks, I'll have to dig out all the paperwork.
Sadly I used the 25% in a failed attempt to prop up my business some 7 years back and at the time I just wanted the money and took no advice, IIRC after speaking to my partner I then chose the option that gave the most income per month which means that when I die the money dries up :-(
That's why I'd like to get the money out now so at least some of it could be stuck away for the family, but as I said earlier looking around the net a lot of other people are cheesed off because it seems you are locked in. Most ins co's are extending the cooling off period for new customers, but some people have signed up as recently as this year are rightly annoyed

[cardiac arrest]

Re: Cashing in your Pension pot....?

Thanks, I'll have to dig out all the paperwork.
Sadly I used the 25% in a failed attempt to prop up my business some 7 years back and at the time I just wanted the money and took no advice, IIRC after speaking to my partner I then chose the option that gave the most income per month which means that when I die the money dries up :-(
That's why I'd like to get the money out now so at least some of it could be stuck away for the family, but as I said earlier looking around the net a lot of other people are cheesed off because it seems you are locked in. Most ins co's are extending the cooling off period for new customers, but some people have signed up as recently as this year are rightly annoyed

have a look on here .. http://www.pensionsandannuities.co.u...troduction.htm They have free advice on the site where you can ask your question and get an emailed reply (I did). plus a lot of info . No need to sign up and pay for anything...

[lookingforward]

Re: Cashing in your Pension pot....?

have a look on here .. http://www.pensionsandannuities.co.u...troduction.htm They have free advice on the site where you can ask your question and get an emailed reply (I did). plus a lot of info . No need to sign up and pay for anything...

Thanks, I'll have a look