Protected pension tax free lump sum - above 25%

[FlipFlopGriff]

I was in the process of moving one of my pension funds to reduce charges and increase my range of funds on offer when I am now told that I have a protected tax free lump sum %age fixed at 6/4/2006. At this date my fund was small (less than £25k) and the figure was set at 36%. I am told by Aviva that this is a fixed %age and can be based on my current pension pot value of over £200k and would equate to over £20k more in potential tax free lump sum cash, or 11% above the standard 25%. I spoke with Aviva who told me this is quite rare and I'm surprised my company would be aware that they had set this up. I am told if I transfer I will lose this benefit.
Now I know there are lots of circumstance where this may be beneficial but I am nearly 53 now and do want to retire in the next few years. I have other pensions and some savings and a large house which I see as my main source of funds going forward when I sell. I don't anticipate going above my personal allowance but if I did this may be a useful benefit so should I stay put or transfer as I'm now in doubt. What are the pros and cons.
I tried to transfer another pension but was told I has a Guaranteed Annuity Rate at 5% and 8% (I have 3 separate pots) which I did see as a benefit as I had other pots I could use for drawdown and use some for an annuity.
FFG

[JulianPH]

FlipFlopGriff said:

I was in the process of moving one of my pension funds to reduce charges and increase my range of funds on offer when I am now told that I have a protected tax free lump sum %age fixed at 6/4/2006. At this date my fund was small (less than £25k) and the figure was set at 36%. I am told by Aviva that this is a fixed %age and can be based on my current pension pot value of over £200k and would equate to over £20k more in potential tax free lump sum cash, or 11% above the standard 25%. I spoke with Aviva who told me this is quite rare and I'm surprised my company would be aware that they had set this up. I am told if I transfer I will lose this benefit.
Now I know there are lots of circumstance where this may be beneficial but I am nearly 53 now and do want to retire in the next few years. I have other pensions and some savings and a large house which I see as my main source of funds going forward when I sell. I don't anticipate going above my personal allowance but if I did this may be a useful benefit so should I stay put or transfer as I'm now in doubt. What are the pros and cons.
I tried to transfer another pension but was told I has a Guaranteed Annuity Rate at 5% and 8% (I have 3 separate pots) which I did see as a benefit as I had other pots I could use for drawdown and use some for an annuity.
FFG

It sounds as though this was an old RAC (nothing to do with car recovery!). The rules on tax free cash were different at the time (but usually 28% - not 38%).

I would get it checked out (post on the IM sticky and this is free) but under the circumstances you state it seems that staying where you are is the most tax efficient option today, though may not be in the future.

It is situations like this that make pensions complex.

[Richard-3pdyn]

Completely depends on your objectives and wider situations.
Worthwhile you getting advice if you haven't already got an advisor.
Sounds like unlikely to be a great benefit to moving unless current fund options very poor (unlikely).

[FlipFlopGriff]

JulianPH said:

It sounds as though this was an old RAC (nothing to do with car recovery!). The rules on tax free cash were different at the time (but usually 28% - not 38%).

I would get it checked out (post on the IM sticky and this is free) but under the circumstances you state it seems that staying where you are is the most tax efficient option today, though may not be in the future.

It is situations like this that make pensions complex.

Aviva are telling me the figure is 36%. Isn't this figure accurate as this could swing the decision. Shall I ask them to confirm?