Pension advice needed
Discussion
My other half has requested to take out 25% of her company pension. The person she has spoken to today (Aviva) has said yes, she can do it but they've also said her pension account will no longer be the same and she'd have to sign up to a different account of some sort to enable her to access any future payout/payments.
Is that correct? She done the same 2 years ago from another company pension and none of this was said then.
Is that correct? She done the same 2 years ago from another company pension and none of this was said then.
Nath911t said:
My other half has requested to take out 25% of her company pension. The person she has spoken to today (Aviva) has said yes, she can do it but they've also said her pension account will no longer be the same and she'd have to sign up to a different account of some sort to enable her to access any future payout/payments.
Is that correct? She done the same 2 years ago from another company pension and none of this was said then.
It very much depends on the terms and conditions of the current pension arrangement. While the legislation permits access of the tax free cash in isolation, the pension arrangement is not obliged to do so. Therefore, sometimes it is necessary to transfer to a different pension arrangement to so do.Is that correct? She done the same 2 years ago from another company pension and none of this was said then.
You should also note that should she receive any flexibly access pension then her maximum ongoing pension contribution allowance will be restricted to £4000 pa.
Make sure they put anything IN WRITING, is my best advice.....just in case ;-)
My main pot is with Aviva, and whilst IN GENERAL they have been excellent, there have been times where I haven't been super clear that they know what they were saying ;-)
I have just done just that with a chunk (almost half) my main DC pot. I am well aware that Aviva will have many schemes, some home grown, some acquired, so hers will almost certainly be different to mine!
Our scheme has a company membersite, in which I can see (& change) where funds are invested. Pretty good, IMHO!
I requested doing precisely what you describe.
They sent me a blue drawdown application form which was pretty straightforward.
I posted back to them, & asked for an email acknowledgement, which I received a few days later (it was sent over the weekend). All good.
Then with 2 days, they had enacted my request, and the 25% TFLS I had requested was in my account within a couple of days.
I got a LTA certificate (with some other paperwork) in the post within a week.
Again, all good - my only concern was at the beginning when people I spoke with on their 'helpline' couldn't *really* tell me the precise process & what I would see at the end.....
My membersite login now shows the total invested, illustrated as
Current fund value £X of which £Y is in Income Drawdown
In the future, I can obviously repeat the exercise for up to the value of £(X-Y)....but as soon as I touch any of Y, I will then have commenced 'actual' drawdown, and will have triggered the MPAA limit, meaning I could only then add up to £4k into the pension
Hope this helps!
eta - yes, when she takes that 25%, it will not be "the same" - it would become a drawdown account.
They ought to be able to tell her what that means for her - how she might draw on that (& remember, at that point, the 75% left is taxed as 'normal income')
My main pot is with Aviva, and whilst IN GENERAL they have been excellent, there have been times where I haven't been super clear that they know what they were saying ;-)
I have just done just that with a chunk (almost half) my main DC pot. I am well aware that Aviva will have many schemes, some home grown, some acquired, so hers will almost certainly be different to mine!
Our scheme has a company membersite, in which I can see (& change) where funds are invested. Pretty good, IMHO!
I requested doing precisely what you describe.
They sent me a blue drawdown application form which was pretty straightforward.
I posted back to them, & asked for an email acknowledgement, which I received a few days later (it was sent over the weekend). All good.
Then with 2 days, they had enacted my request, and the 25% TFLS I had requested was in my account within a couple of days.
I got a LTA certificate (with some other paperwork) in the post within a week.
Again, all good - my only concern was at the beginning when people I spoke with on their 'helpline' couldn't *really* tell me the precise process & what I would see at the end.....
My membersite login now shows the total invested, illustrated as
Current fund value £X of which £Y is in Income Drawdown
In the future, I can obviously repeat the exercise for up to the value of £(X-Y)....but as soon as I touch any of Y, I will then have commenced 'actual' drawdown, and will have triggered the MPAA limit, meaning I could only then add up to £4k into the pension
Hope this helps!
eta - yes, when she takes that 25%, it will not be "the same" - it would become a drawdown account.
They ought to be able to tell her what that means for her - how she might draw on that (& remember, at that point, the 75% left is taxed as 'normal income')
Edited by mikeiow on Friday 1st November 10:51
mikeiow said:
Make sure they put anything IN WRITING, is my best advice.....just in case ;-)
My main pot is with Aviva, and whilst IN GENERAL they have been excellent, there have been times where I haven't been super clear that they know what they were saying ;-)
I have just done just that with a chunk (almost half) my main DC pot. I am well aware that Aviva will have many schemes, some home grown, some acquired, so hers will almost certainly be different to mine!
Our scheme has a company membersite, in which I can see (& change) where funds are invested. Pretty good, IMHO!
I requested doing precisely what you describe.
They sent me a blue drawdown application form which was pretty straightforward.
I posted back to them, & asked for an email acknowledgement, which I received a few days later (it was sent over the weekend). All good.
Then with 2 days, they had enacted my request, and the 25% TFLS I had requested was in my account within a couple of days.
I got a LTA certificate (with some other paperwork) in the post within a week.
Again, all good - my only concern was at the beginning when people I spoke with on their 'helpline' couldn't *really* tell me the precise process & what I would see at the end.....
My membersite login now shows the total invested, illustrated as
Current fund value £X of which £Y is in Income Drawdown
In the future, I can obviously repeat the exercise for up to the value of £(X-Y)....but as soon as I touch any of Y, I will then have commenced 'actual' drawdown, and will have triggered the MPAA limit, meaning I could only then add up to £4k into the pension
Hope this helps!
eta - yes, when she takes that 25%, it will not be "the same" - it would become a drawdown account.
They ought to be able to tell her what that means for her - how she might draw on that (& remember, at that point, the 75% left is taxed as 'normal income')
Thanks for taking the time out for your reply. Good info and much appreciated My main pot is with Aviva, and whilst IN GENERAL they have been excellent, there have been times where I haven't been super clear that they know what they were saying ;-)
I have just done just that with a chunk (almost half) my main DC pot. I am well aware that Aviva will have many schemes, some home grown, some acquired, so hers will almost certainly be different to mine!
Our scheme has a company membersite, in which I can see (& change) where funds are invested. Pretty good, IMHO!
I requested doing precisely what you describe.
They sent me a blue drawdown application form which was pretty straightforward.
I posted back to them, & asked for an email acknowledgement, which I received a few days later (it was sent over the weekend). All good.
Then with 2 days, they had enacted my request, and the 25% TFLS I had requested was in my account within a couple of days.
I got a LTA certificate (with some other paperwork) in the post within a week.
Again, all good - my only concern was at the beginning when people I spoke with on their 'helpline' couldn't *really* tell me the precise process & what I would see at the end.....
My membersite login now shows the total invested, illustrated as
Current fund value £X of which £Y is in Income Drawdown
In the future, I can obviously repeat the exercise for up to the value of £(X-Y)....but as soon as I touch any of Y, I will then have commenced 'actual' drawdown, and will have triggered the MPAA limit, meaning I could only then add up to £4k into the pension
Hope this helps!
eta - yes, when she takes that 25%, it will not be "the same" - it would become a drawdown account.
They ought to be able to tell her what that means for her - how she might draw on that (& remember, at that point, the 75% left is taxed as 'normal income')
Edited by mikeiow on Friday 1st November 10:51
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