4D
Or not 4D that is the question
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« on: Wednesday, March 27, 2013, 18:53:33 » |
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I have an old pension fund that has not been used for 15 years. Does anyone have a rough idea how much it would be worth if I cashed in on it? As a percentage of the value? Ta.
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Bogus Dave
Ate my own dick
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« Reply #1 on: Wednesday, March 27, 2013, 18:56:13 » |
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I'm not an expert, but how are people supposed to know, despite the extensive information given
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Things get better but they never get good
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@MacPhlea
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« Reply #2 on: Wednesday, March 27, 2013, 18:58:40 » |
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I'm not a Financial Advisor but I don't think you can just 'cash in' a pension plan unless you are over 50... If you have another pension why not just transfer it into that? I've just consolidated 3 plans into one with Hargreaves Lansdown SIPP and now have complete control over where it is invested.
On a side, my other half had a pension plan that hadn't been used for a similar period of time and the management fees paid over the period meant it was worthless and was closed out...
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« Last Edit: Wednesday, March 27, 2013, 19:14:08 by @MacPhlea »
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Arriba
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« Reply #3 on: Wednesday, March 27, 2013, 19:02:05 » |
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I'm not an expert, but how are people supposed to know, despite the extensive information given
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4D
Or not 4D that is the question
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« Reply #4 on: Wednesday, March 27, 2013, 19:02:34 » |
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Hmmm, I always thought that an offer could be made on a fund value I could transfer it but I wouldn't mind a bit if cash now. I'm not quite 50 yet.
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« Last Edit: Wednesday, March 27, 2013, 19:07:58 by 4D »
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4D
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« Reply #5 on: Wednesday, March 27, 2013, 19:05:35 » |
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I'm not an expert, but how are people supposed to know, despite the extensive information given
Thanks Dave, but I was hoping that samdy was reading this. It could be a rough rule of thumb that you are offered e.g. 50% of the current fund value.
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@MacPhlea
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« Reply #6 on: Wednesday, March 27, 2013, 19:10:59 » |
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Trouble is with pension funds is that you received tax relief on it - as a result the rules for cashing out are completely different to ISA's and endowments
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4D
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« Reply #7 on: Wednesday, March 27, 2013, 19:14:30 » |
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You're right, I can't cash it I can only transfer it or wait until I retire
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fatbasher
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« Reply #8 on: Wednesday, March 27, 2013, 19:16:19 » |
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I think you might have to wait till you are 55 now. The rule was changed a few years ago because my old Allied Crowbar give us £100 and we'll give -£100 back was one where I could take 60% of the fund at 50. Less tax of course. So I was going to use the lump to reduce or pay off my mortgage and cane my company pension for as long as I'm employed by them to make up a decent pot when I retire at about 96 if I'm lucky....
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leefer
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« Reply #9 on: Wednesday, March 27, 2013, 19:19:03 » |
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You are right Fatbasher.....and then you can only have a quarter of the value as a lump sum...the rest has to be a pension.
There are companys who will temp you to invest with them and they will give you slightly more than the quarter value.
This can lead to problems.
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janaage
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« Reply #10 on: Wednesday, March 27, 2013, 19:45:38 » |
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Under current rules, when you reach 55 years old, 25% can be taken as pension commencement lump sum, which is as others have said tax free. The remainder can be used to buy an annuity or if you have a healthy pension pot go into what known as drawdown, which is worth reading up on.
Like I say these are current rules, by the time most of us retire there will be plenty more rules and regs to take into account, no doubt.
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Samdy Gray
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« Reply #11 on: Wednesday, March 27, 2013, 19:48:36 » |
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4D, more than happy to help.
Send me a PM and we can sort something out.
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Samdy Gray
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« Reply #12 on: Wednesday, March 27, 2013, 19:51:35 » |
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I think you might have to wait till you are 55 now. The rule was changed a few years ago because my old Allied Crowbar give us £100 and we'll give -£100 back was one where I could take 60% of the fund at 50. Less tax of course. So I was going to use the lump to reduce or pay off my mortgage and cane my company pension for as long as I'm employed by them to make up a decent pot when I retire at about 96 if I'm lucky....
Depends what type of pension it is. If the cash was higher than 25% pre April 2006 then it may be protected and you might still be entitled to more than 25%. Allied Dunbar were big in the exec pension market and if it's one of those you have then chances are the tax free cash entitlement may be higher than 25%. Again, if you want me to take a look, more than happy to help.
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