Have personal pension that pays most at 50 and rest at 60. Wish to move this into one fund drawing at 50?

Question

I wish to take 25% lump sum to reduce mortgage and take rest as pension at 50 or only use lump sum and re-invest remainder.
Can I do this ?
I also have a good company plan

Answer 1

If you are 50 already (or will be before 2012), then yes, you can take Early Retirement from any (or all) or your Pension Schemes.

You don't have to give up work (but if you become unemployed and are discovered to be Retired you might not get any Job Seekers Allowance).

All Schemes have to offer a Transfer Value (so you can more your Pension 'pot' to another Pension Administrator, or even into a SIPP). Also when your Retire they have to offer an Open Market Option (so you can take your Pension Annuity from a different company - or move into 'Draw Down' if you are running a SIPP).

As a general guide, it is usually better to consolidate all Defined Contribution (Money Purchase, Private Pension, AVC, FSAVC & SIPP etc) Schemes into a single Scheme with a low cost provider as soon as possible (unless you intend to choose your own investments via a SIPP I suggest you focus on the Pension providers with the lowest annual charges = usually those who will invest your funds in Index Trackers).. however any Final Salary Schemes are usually best being left alone for as long as possible.

I highly recommend you start learning to manage your own finances - this is VITAL for those contemplating Retiremnet (when every penny counts) = those who are unwilling (or unable) to learn how to "drive" their own finances will ALWAYS be "taken for a ride" (the only question is how much will you be ripped off for ?) - and you also need to be aware of Taxes and other Investment opportunities (including ISA's ect)

The average "Financial Consultant" has NO IDEA what is best for their "Clients" - their ONLY goal is to SELL you whatever product pays them the highest Comission this month - and them get you to switch as soon as possible into some other high comission paying product.

Pension Companies operate out of Gold Plated Marble Palaces in the center of London and pay million ££ Bonuses to their salesmen every year - and EVERY PENNY of this comes straight out of the pockets of the "investors" (aka 'Marks' or mugs) that they "advise".

Answer 2

Hi

You can get FREE advice from this pension company :
http://www.e-financialaffiliates.com/track.aspx?cid=31&efid=3492