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Discussion Starter #1
Hi all. A bit of an odd one,but have been contemplating doing this,due to pensions not really being the good option that they once were. Only problem is that you cant cash them in early with the pension provider,so you would have to transfer it to another company that will either cash it in or provide a pension loan(dont like the idea of the loan).
Has anyone used one of these companies,and if so would you recommend them or not? Also,what is the tax situation with an early cash in,as i dont think you pay tax on a pension until you are due to take it at retirement?
Any info/help/advice wil be much appreciated,as i could do with more info before making any rash decisions!I:.
Thanks guys. Paul.
 

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Hi all. A bit of an odd one,but have been contemplating doing this,due to pensions not really being the good option that they once were. Only problem is that you cant cash them in early with the pension provider,so you would have to transfer it to another company that will either cash it in or provide a pension loan(dont like the idea of the loan).
Has anyone used one of these companies,and if so would you recommend them or not? Also,what is the tax situation with an early cash in,as i dont think you pay tax on a pension until you are due to take it at retirement?
Any info/help/advice wil be much appreciated,as i could do with more info before making any rash decisions!I:.
Thanks guys. Paul.
Have a few pensions, one in particular was from many years work and was high in value, financial advisor advised a couple of years ago to take it out as due to current and forthcoming climate the cash could be made to work harder. Took a cash lump sum out and kept a monthly pension payable for life, this was a company scheme. No tax payable on the lump sum, tax payable on the monthly payment.
 

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If you have a heating problem, you call in a plumber. If your electrics keep blowing fuses, you call in an electrician. If you want to make a will. . .

You can 'ave a go yourself and then have to pay over the odds to not only fix the original fault, but to undo the mistakes you have made in trying to 'fixit'. (especially in the last instance).

Try and find a RELIABLE financial advisor, usually tracked down by word of mouth, you know it makes sense.

A: Cheers, Tony.
 

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Hi all. A bit of an odd one,but have been contemplating doing this,due to pensions not really being the good option that they once were. Only problem is that you cant cash them in early with the pension provider,so you would have to transfer it to another company that will either cash it in or provide a pension loan(dont like the idea of the loan). You can take benefits from any private arrangement from age 55 so you don't need to transfer. When you say 'cash in' you can only take 25% of the fund (unless a higher amount was protedted before 'A'day). The remainder must either buy an annuity (pension for life) or go into USP where even though you have taken the lump sum, you don't have to take the income.
Has anyone used one of these companies,and if so would you recommend them or not? Also,what is the tax situation with an early cash in,as i dont think you pay tax on a pension until you are due to take it at retirement? You always pay tax on the income if it pushes you above the personal allowance. The 25% pension commencement lump sum is tax free.
Any info/help/advice wil be much appreciated,as i could do with more info before making any rash decisions!I:. Yes, I am an IFA;)
Thanks guys. Paul.
Paul, see my response above.
 

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Rainifa, I think the phrase that everyone quakes over is "Buy an Annuity". It's the same as "There be Dragons". This is the big step where so much could go wrong. This is the one step you need good advice. Cheers, Tony.
 

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I'm awaiting feedback on my frozen pension with Ford.
Its 11 years worth. If it's a huge lump I could do with taking that out but have no idea how
 

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Discussion Starter #7
I have a pension that i took out 13 years ago with barclays,when things were a bit rosier. However,i dont feel that this pension will return anywhere near what was predicted/suggested at the time,so would rather use it to save/invest in something that i feel i have more control over. At 34 im 21 years too young to take this pension,but there are companies that you can transfer it to so that you can cash it in. Its these companies that im interested in,as i really dont want to get stiffed if i go down this route. I asked barclays about cashing it in,but was told that i cant cash it in till 55,and that was that! Is there a way to do this without it costing me most of the pension fund? Cheers.T:
 

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I have a mate, Ptol (silent P) who is a financial adviser. may not be a pensions expert but must have had to deal with them or will point you to someone who does (generally London and Hampshire).

Wykeham Independent Consultants, 01962-843 001.

Short term I would make sure you're fully invested right now, looking at quite a jump in the markets with the mother of all money printing we're about to do.

If you're close to the end of your pension, you'll likely be mainly invested in bonds and that's dangerous now. They are at all time highs right now and can only go one way when interest rates rise. The bond boom of the last 30 years is over. Pension wise we're all screwed.

Problem is annuities suck right now as interest rates are so low, you hardly earn anything so I wouldn't buy them if you can avoid it. REally tough, get advice and remember we're on a decade long inflation path with lots of currency devaluation, so grill your advisor on how to allow for that (big reliable dividend paying stocks and hard assets).
 

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I have a pension that i took out 13 years ago with barclays,when things were a bit rosier. However,i dont feel that this pension will return anywhere near what was predicted/suggested at the time,so would rather use it to save/invest in something that i feel i have more control over. At 34 im 21 years too young to take this pension,but there are companies that you can transfer it to so that you can cash it in. Its these companies that im interested in,as i really dont want to get stiffed if i go down this route. I asked barclays about cashing it in,but was told that i cant cash it in till 55,and that was that! Is there a way to do this without it costing me most of the pension fund? Cheers.T:
Well you just can't help some people.:cool:
 

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Discussion Starter #10
Well you just can't help some people.:cool:
Hi,sorry rainifa,your info is much appreciated. Having spoken to a couple of people,im still not convinced a pension is the best option. However,rather than cashing it in,im going to freeze it,and start paying into the highest interest savings account that i can find. That way i have a bit more control over my money,and still have money in the pension fund for when the time comes. Lets hope the pension funds pick up before then!
 
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