Small Pension fund. Transfer to somewhere I can get it?
Discussion
Morning all,
I received a pension statement, that I havent paid into for years. Not worth much in fact current transfer value £3,315.45.
Its there, and somehow belogs to me having paid into it, so would like to know if I can set myself up as a pension manager - trnasfer this fund to it, and then take it out, cash it in?
This might be pie in the sky, but someone has that (my) money.
I received a pension statement, that I havent paid into for years. Not worth much in fact current transfer value £3,315.45.
Its there, and somehow belogs to me having paid into it, so would like to know if I can set myself up as a pension manager - trnasfer this fund to it, and then take it out, cash it in?
This might be pie in the sky, but someone has that (my) money.
You could look at transferring it into any other pension plan you may have, or your employer's scheme if you're in it.
If you're 50 or over you could take 25% of the fund tax free now, but not after April next year when the minimum age rises to 55.
Although not impossible to cash it in, the tax penalties make this a non starter.
If you're 50 or over you could take 25% of the fund tax free now, but not after April next year when the minimum age rises to 55.
Although not impossible to cash it in, the tax penalties make this a non starter.
I recall there are specials arrangemnets for very small funs whereby you an have it as cash on retiremnet. I thought it was about £20K??
I recall it because I was trying to keep one I have under the £20K limit which is not difficult given the current market!
I don't think you can get your hands on it until you were due to retire.
I recall it because I was trying to keep one I have under the £20K limit which is not difficult given the current market!
I don't think you can get your hands on it until you were due to retire.
I have just turned 37, so a while off those numbers yet. As a disbeliever in pensions, I was thinking of a more crude method to access my money, rather than re-invest it into other types of the same thing. Can I become a stock dealer, pensions administrator, set up a company. Transfer the fund, then do as I please with it? Its a good pot of money to me right now. Useless where it is.
Blipi said:
I have just turned 37, so a while off those numbers yet. As a disbeliever in pensions, I was thinking of a more crude method to access my money, rather than re-invest it into other types of the same thing. Can I become a stock dealer, pensions administrator, set up a company. Transfer the fund, then do as I please with it? Its a good pot of money to me right now. Useless where it is.
For less than £4K!http://www.pensionsadvisoryservice.org.uk/Speciali...
Sounds like you guys are thinking of SIPPs?
See the £3k benefit? Is that what's in the fund just now, or benefit on retirement? If it's the latter then you probably have about 50p stashed in there.
Sounds like you guys are thinking of SIPPs?
See the £3k benefit? Is that what's in the fund just now, or benefit on retirement? If it's the latter then you probably have about 50p stashed in there.
I understand the OP`s frustration. As a 20 year old I paid into a pension for a short time that is worth approx £6k now. I contacted Abbey Life to get the money out and they said I could not take it out. Then they sent me a letter to say instead of being able to take the cash out at 50 the law has changed and I cannot take the money out till I am 55. Thanks for that. I don`t need the money but it pis+ses me off that they can just change the law like that. As a 20 year old you think you are being guided by Abbey Life and similar but they are just another money making machine.
Shoebag,
I don't mean to be flippant, but did they not tell you that the pension was for your retirement, or did you want to transfer it to another scheme? And yes, the company has to make money out of your contributions, because if it didn't, then neither would your pot grow and thats what you're counting on.
If accessibility isn’t your main consideration, there's not much to touch a pension for most people. Putting just the tax benefits into context, if you placed the maximum annual contribution of £7200 into an ISA, and if it grew at 6% (ha), it would take more than 4 years to get the uplift that a contribution into a pension plan gains *overnight* for Normal Rate Taxpayers, and 9 years for a Higher Rate Taxpayer gets.
Justin,
Money Management magazine costs a few quid, but this month's issue has a small supplement on personal pensions which you might find useful if you want to place your business somewhere. You shouldn't need anything too sophisticated if you have a modest sum at the moment.
I don't mean to be flippant, but did they not tell you that the pension was for your retirement, or did you want to transfer it to another scheme? And yes, the company has to make money out of your contributions, because if it didn't, then neither would your pot grow and thats what you're counting on.
If accessibility isn’t your main consideration, there's not much to touch a pension for most people. Putting just the tax benefits into context, if you placed the maximum annual contribution of £7200 into an ISA, and if it grew at 6% (ha), it would take more than 4 years to get the uplift that a contribution into a pension plan gains *overnight* for Normal Rate Taxpayers, and 9 years for a Higher Rate Taxpayer gets.
Justin,
Money Management magazine costs a few quid, but this month's issue has a small supplement on personal pensions which you might find useful if you want to place your business somewhere. You shouldn't need anything too sophisticated if you have a modest sum at the moment.
Ginge R said:
Shoebag,
I don't mean to be flippant, but did they not tell you that the pension was for your retirement, or did you want to transfer it to another scheme? And yes, the company has to make money out of your contributions, because if it didn't, then neither would your pot grow and thats what you're counting on.
If accessibility isn’t your main consideration, there's not much to touch a pension for most people. Putting just the tax benefits into context, if you placed the maximum annual contribution of £7200 into an ISA, and if it grew at 6% (ha), it would take more than 4 years to get the uplift that a contribution into a pension plan gains *overnight* for Normal Rate Taxpayers, and 9 years for a Higher Rate Taxpayer gets.
Justin,
Money Management magazine costs a few quid, but this month's issue has a small supplement on personal pensions which you might find useful if you want to place your business somewhere. You shouldn't need anything too sophisticated if you have a modest sum at the moment.
but this misses the point - you could take the isa fund out tax-free at retirement, whereas 75% of the pension would have to be paid as an annuity, which is taxedI don't mean to be flippant, but did they not tell you that the pension was for your retirement, or did you want to transfer it to another scheme? And yes, the company has to make money out of your contributions, because if it didn't, then neither would your pot grow and thats what you're counting on.
If accessibility isn’t your main consideration, there's not much to touch a pension for most people. Putting just the tax benefits into context, if you placed the maximum annual contribution of £7200 into an ISA, and if it grew at 6% (ha), it would take more than 4 years to get the uplift that a contribution into a pension plan gains *overnight* for Normal Rate Taxpayers, and 9 years for a Higher Rate Taxpayer gets.
Justin,
Money Management magazine costs a few quid, but this month's issue has a small supplement on personal pensions which you might find useful if you want to place your business somewhere. You shouldn't need anything too sophisticated if you have a modest sum at the moment.
the only real tax benefit is that 25% of the pension is (currently) tax free, and your tax rate might be lower in retirement
JohnP68 said:
.. but this misses the point - you could take the isa fund out tax-free at retirement, whereas 75% of the pension would have to be paid as an annuity, which is taxed
the only real tax benefit is that 25% of the pension is (currently) tax free, and your tax rate might be lower in retirement
I did say that if accessibility wasn't a main consideration, but I take your point. They are both completely different vehicles and it wasn't meant as a comprehensive like for like comparison. Pensions are definitely long term investments and its not a question of which one's #better#, rather which one is more appropriate.the only real tax benefit is that 25% of the pension is (currently) tax free, and your tax rate might be lower in retirement
Don't forget though, that with regards to taxation, a pension may sit safely outside an Estate, saving Inheritance Tax. Personal pensions also offer benefits on death but if an ISA saver dies, all tax benefits accrued are revoked and an Estate could get boshed with a 40% tax bill.
Any liability to Capital Gains Tax would apply to gains made between the dates of the owner's death and the encashment of the ISA. Also, losses on ISA investments cannot be allowed for CGT purposes against capital gains outside an ISA.
haworthlloyd1 said:
some benefits of pensions
if you go bankrupt you don't lose your pension now - you would lose isas, property etc
OK, the perfect scenario. Now I am about to move to negative equity! Possibly loose my job. Having a 12 year old van, that I understand I can keep as its a tool. I max out any credit cards into a lump sum pension scheme. Borrow all I can etc, then go bust.if you go bankrupt you don't lose your pension now - you would lose isas, property etc
My future is sorted, that beach is becons!
I am of course just been silly. Today I am off to buy that mag.
Edited by justinbaker on Monday 9th March 05:24
The mag is data based Justin, and although ideal for pros or experienced investors, with hindsight it might seem a little baffling.
Given the kinds of funds you have, phone your local IFA and ask about something simple and cheap, like transferring into (you don't say what kind of pension you already have) a Stakeholder pension scheme. I don't know what's best for you, but he/she will be able to advise you properly, and consider products from across the market.
Tap in your postcode here to find him/her and there are some Stakeholder links for you as well. Good luck!
http://www.unbiased.co.uk/find-an-independent-fina...
http://www.thepensionsregulator.gov.uk/stakeholder...
http://www.hmrc.gov.uk/stakepension/
http://www.thepensionservice.gov.uk/atoz/atozdetai...
Given the kinds of funds you have, phone your local IFA and ask about something simple and cheap, like transferring into (you don't say what kind of pension you already have) a Stakeholder pension scheme. I don't know what's best for you, but he/she will be able to advise you properly, and consider products from across the market.
Tap in your postcode here to find him/her and there are some Stakeholder links for you as well. Good luck!
http://www.unbiased.co.uk/find-an-independent-fina...
http://www.thepensionsregulator.gov.uk/stakeholder...
http://www.hmrc.gov.uk/stakepension/
http://www.thepensionservice.gov.uk/atoz/atozdetai...
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