Un-used private pension reclaim

[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

[lookingforward]

Re: Un-used private pension reclaim

Thanks guys.

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

[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.

[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

[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 ?

[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.

[helmsman]

Re: Un-used private pension reclaim

Thats only true in parts , yes you can only draw 25% in cash but you dont have to buy and annuity there are other options such as draw down etc.

As for annuities being worthless, not sure quite what you mean by that. I must admit there is more bollocks spoke about pensions than any other subject on our beloved forum

Hi,
Just read the thread and pensions are a nightmare for most of us, but I will tell you a story, had 2 works pensions 1 with 15 years and 1 with 10 years of contributions ie 1 1970 to 1985 1 1990 to 2000, the first one I cashed in when I was 50 thru (Berkely Jacobs tele add) they got me £8000 cash + £650 every Sept (needed the money) a few years later I got a letter saying did I think I was given bad advice obviously I said yes, a couple of months later I received a letter saying the advice I was given was ok thought no more of it, a year later I received a letter from Berkley Jacobs offering me a lump sum of £11800 or an amount every year as full settlement, £11800 was received by cheque a couple of weeks later (thanks very much). Then I cashed my next pension last year at 60 received £11000 cash lump sum + £1700 per year (every June so we have a holiday). Have no Idea if I did the right thing in cashing them but at least we had the benefit, now my inlaws had a good pension then father in law died and my mother in law gets a pittance now.

[mgfboy]

Re: Un-used private pension reclaim

Yeah I looked into mine and at age 55 you can draw 25% tax free but must buy an annuity unless you have a terminal illness, at age 60 you can draw the whole lot IF the entire fund is 18k or less, 25% would be tax free and the rest at normal tax rate.

Not an expert but I spent months on this last year. Annuities are worthless at the moment.

Thats only true in parts , yes you can only draw 25% in cash but you dont have to buy and annuity there are other options such as draw down etc.

As for annuities being worthless, not sure quite what you mean by that. I must admit there is more bollocks spoke about pensions than any other subject on our beloved forum

[ken100464]

Re: Un-used private pension reclaim

Was a good year last year as my pension grew alot too.

However the downside was the previous couple of years it was shrinking.

Overall the last 4/5 years have been one of just standing still. They have shafted us over just about everything we ever did/do/or might be thinking of.

[kuma]

Re: Un-used private pension reclaim

Be careful, some companies say they can release your pension early. Do a little googling. (it's not good)
you either lose your money all together (when they move it overseas) or you could be left with a large tax bill.
As above you can release 25% at age 55 (was 50 a few years back)
I thought of getting some of mine back and clearing my debs, researched and after reading the warnings and stories of others that had done the same, was put off.
I decided I can wait another couple of years and just take the 25% then.

I had my pension statement the other day..It had grown by 13.8% since last year.
At least some companies are doing ok...it does piss me off that it costs me 1.5% just to have someone look after it.

kuma

[vossy]

Re: Un-used private pension reclaim

As my piddling little bit is just under the 18k rule I am leaving it there until I am 60 so I can have it all back albeit having to pay the tax, as it is now paid up and it is not attracting any interest so I should be okay - if I live that long, otherwise I suppose Mrs Vossy will be out on the town

[mgfboy]

Re: UN-used private pension reclaim

You can only ever draw 25% of the pension as a tax free lump sum unless it was and old RAC ,EPP/SSAS or section 32 buyout bond (even in those cases it would be unlikely to get much more). Also Vossy is correct about commuting trivial funds and terminal illness, their are also rules that come into effect if you die before purchasing and annuity.

You can transfer the amount into another pension pot , but you dont have to buy an annuity , you can go into other types of contracts if you require ( drawdown etc).

Unfortunately though, pensions are quite simple, you have to pay a lot in to get a lot out. There is no magic to it , very few people though have the discipline to do it unless they where in a company/government back scheme which makes them.

[SXGuy]

Re: Un-used private pension reclaim

also bare in mind if hes still working and if he can get it released, he will be taxed on it

[vossy]

Re: Un-used private pension reclaim

Oh bummer, his lump sum is over £20k. Can he transfer say £10k into one, and the remainder into another, and withdraw both in a few years? Or is that too obvious a loophole?

I don't know - seems too obvious doesn't it? The whole pension thing is a nightmare, what makes it worse is that when I signed up to mine I should have been able to take the whole lot out at age 55 then the bloody gvt steps in and changes all the rules and I can't sue 'em for breach of contract - cheating load of barstewards, just shows where all the tossers have their money tied up

[Shadow2981]

Re: Un-used private pension reclaim

Oh bummer, his lump sum is over £20k. Can he transfer say £10k into one, and the remainder into another, and withdraw both in a few years? Or is that too obvious a loophole?