Un-used private pension reclaim

[ken100464]

Re: Un-used private pension reclaim

All of us will only know if we did the right thing the day we die.

Its such a lottery.

[lookingforward]

Re: Un-used private pension reclaim

Confused here.

I have 2 pension pots that I drew 25% out of when I was 50 to drive and prop up my business, so basically lost the lot. Not sure what the bal is but I get about £140 p/m out of one and £40 odd from the other. Can I get the full balances out at 60 ?

[garlok]

Re: Un-used private pension reclaim

Confused here.

I have 2 pension pots that I drew 25% out of when I was 50 to drive and prop up my business, so basically lost the lot. Not sure what the bal is but I get about £140 p/m out of one and £40 odd from the other. Can I get the full balances out at 60 ?

As far as I know only under the "Trivial Commutation" rules. HMRC's website does give some good explanations but be very careful, there are tight strictly controlled limits which TOTAL please note TOTAL £18000 and they DO apply them.

There are other options as has been pointed out, not least of which is SIPP (self invested pension plan) and which are operated by a number of companies. However treat these with the utmost caution as well. We have a close family member getting £216 per month from his plan (the greatest thing since sliced bread) which was suddenly reduced last year to £88 per month without notice as such. This was placed with one of the most "reputable" companies in the business as well.

regards
G

[helmsman]

Re: Un-used private pension reclaim

Confused here.

I have 2 pension pots that I drew 25% out of when I was 50 to drive and prop up my business, so basically lost the lot. Not sure what the bal is but I get about £140 p/m out of one and £40 odd from the other. Can I get the full balances out at 60 ?

When I was 50 I cashed only 1, left the other 1 to when I was 60 then cashed that 1. so if you have already cashed both you will need expert advice I would think.

[lookingforward]

Re: Un-used private pension reclaim

Thanks guys.

Obviously wish I hadn't touched either now....hindsight is a wonderful thing

[garlok]

Re: Un-used private pension reclaim

Thanks guys.

Obviously wish I hadn't touched either now....hindsight is a wonderful thing

Not necessarily the case FedUp. You may have done sort of OK out of it. When Mrs G reached 60 (plus 3 months due to the new rules) she took her full state pension plus some other private pension she had saved for and a small occupational pension. The small AVC she had saved in was with the same company that my major pension savings were with. I was 63 then. The company suggested to Mrs G that I contact them and consider taking mine a couple of years early on the grounds of my ill health and the plan was "paid-up" anyway. To cut a long story short the calculations showed that I would have been £1 per month better off only leaving it in until the due date. Plus they threw in some nice guarantees for 10years and the fact that Mrs G will a full 50% on my demise for the remainder of her life.

In the end this has proved to be a wise decision (blimey that's a first!). Brother in Law the elder had a similar pension pot to mine and the very best he could do with the annuity last year was 30% less than I am getting with virtually no add-ons like ours.

Based on your statement of about £140 per month, depending on your plan would suggest that the size of the fund is too high for a trivial commutation to get the full amount. As well you say you have an additional fund which gives you about £40 per month. If you add the two pots of cash together you will almost certainly find that they total rather more than the £18,000 limits imposed by HMRC.

Hope this helps
regards
G