Pension Plans?

Question

I Have a small pension plan and i wish to take early retirement.but i have been told i can only access 25% of it as i am only 51.I want to use this money to set up a new life abroad.Can anyone tell me how i can get the full amount that in my opiniun is mine,payed to me.

Answer 1

Other than the Small Fund provision there is ony one way that I am aware of .. that is to Transfer the Pension Fund abroad to a "non-approved" scheme (i.e. one not approved by UK Inland Revenue) and one that allows you to take the funds as cash ..

You will pay UK Tax of about 65% BEFORE the Transfer and (no doubt) about 5% to the new scheme and (if anything is left over) Income Tax of whatever Country you move to.

As an alternative :-

Take the 25% (its Tax Free in UK).

Use the rest to buy an Annuity paid into a UK Bank account (using a relatives address) that allows you to manage the accoiunt on-line. Draw the money via a "hole in the wall" where-ever you end up.

Answer 2

Hiya, under the new pensions legislation, you can now take 25% of your fund as a tax free lump sum at retirement. This should have nothing to do with you wanting to take your pension early though. The remainder of your fund would have to be used to purchase an annuity for you.

If you are expecting to be able to take the whole fund as a lump sum, then you won't be able to do this unless all your pension arrangements are valued at less than £16k (1% of the current Lifetime Allowance).

Hope that helps.