Pension

[securespark]

I took out a TSB pension in 1991 and another in 1996.
They are now Scottish Widows pensions.

Earlier this year, I took the tax-free 25% lump sum.

Now I'd like to move my SIPP to another provider and add the SW pension to it.

But I've been told by SW that the pension can't be moved away from them now.

I know far too little about money and pensions.
How could I have taken the 25% and been able to move the rest elsewhere?

 

[JohnD]

Are you taking pension payments from SW?

If not, I don't know why you can't move it. Ask them.

I have a SIPP, now with II. I took a tax free lump sum some years ago, when it was managed by a different company that later sold the business to II, and I have had some taxed drawdown since.

They do not offer annuities and I am planning to move the current value using the Open Market Option to a life office that does offer them.

 

[securespark]

No, only the 25pc lump sum.

I have asked them. But I will try again.

How is ii?

They are Which recommended and one of my choices to move to.

 

[big-all]

absoluty no expert on pensions off any kind
i just wonder if by asking to release the 25% in the paperwork you may have dictated what should happen to or move to a fix product the other 75% thus not available till the full term is over??
but fully a guess as i say

 

[JohnD]

No, only the 25pc lump sum.

I have asked them. But I will try again.

How is ii?

They are Which recommended and one of my choices to move to.

Cheap for dealing, and if you have an ISA with them as well as a SIPP. You get one free deal a month and others are £3.99 I think.

They charge a monthly fee which is not a percentage of your funds, so better value as your funds grow.

I transferred several small pensions into a SIPP there.

You can withdraw funds online and they are sent on the following day.

For a SIPP, IIRC when you start drawdown you have to fill in online forms. They deduct PAYE and generate a sort of payslip. You can do regular or one-off, and they calculate Crystalised Funds (the amount you have drawn tax-free cash from) and Uncrystalised (that you can draw with a tax-free proportion if you want). It can be better value to use drawdown and have 25% tax free from each payment rather than all at the beginning, because your fund will hopefully grow.

No tax is deducted from ISA withdrawals.

It is rumoured that the next budget will tighten up on tax-free limits on pensions.

Managed online. Their real-life customer service is quite slow.

 

[securespark]

Thank you.

 

[Murdochcat]

SW are misleading you - the fact you have taken the 25% is irrelevant. Ask them again

 

[Murdochcat]

No tax is deducted from ISA withdrawals.

I suspect the ISA limit will be lowered at the next budget

It is rumoured that the next budget will tighten up on tax-free limits on pensions.

Which is madness, unless they put an annual limit in place

 

[JohnD]

Which is madness

What makes you think that?

The limit is currently more than a quarter of a million.

The combined Lump Sum and Death Benefit Allowance is more than a million.

The contributions were from untaxed income.

 

[Murdochcat]

What makes you think that?

The limit is currently more than a quarter of a million.

How many people have over a million in their pension?

I think an annual limit would make sense - but my name isn’t Theeves

 

[JohnD]

How many people have over a million in their pension?

You mean, because there are not very many rich people, you think they should be given huge tax benefits?

What next?

Handouts of free doughnuts of the obese?

Half-price petrol for owners of Rolls-Royces and Ferraris?

Reduced council tax for owners of palaces?

 

[Murdochcat]

You mean, because there are not very many rich people, you think they should be given huge tax benefits?

What next?

Handouts of free doughnuts of the obese?

Half-price petrol for owners of Rolls-Royces and Ferraris?

Reduced council tax for owners of palaces?

Oh dear, mis reading yet again.

As it stands people like you could take £250k out of their pension this year

I think there should be a statement of 25% up to a maximum of , say £50k per year

Then people like me could take 25% this year (which I won’t) and a richer person could only take a maximum of £50k this year

 

[JohnD]

So why did you say tightening tax free limits would be madness?

 

[gas112]

Transferring your pension

You can transfer your pension fund to another pension scheme – generally any time up to one year before the date when you are expected to start drawing retirement benefits. In some cases, it’s also possible to transfer to a new pension provider after you've started to draw retirement benefits.

www.nidirect.gov.uk

 

[securespark]

SW are misleading you - the fact you have taken the 25% is irrelevant. Ask them again

I did that yesterday. And got the same answer. So I rang again. And this time was told that, yes, I could move my funds to another provider. But I was advised that because I had taken a lump sum, the pension was now "crystallised funds", whereas before taking a lump sum (IE an untouched pension pot), they are "uncrystallised funds". The former are not always accepted when transferred to other providers, whereas the latter are. I will ring other providers over the next few days to see how the land lies.