2007-08-23 01:18:36 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Contact the pension company and ask them if it can be converted to a lump sum. Some have that option at retirement instead of taking payments. You would owe all the taxes unless you could roll it into a IRA.
Talk to your tax adviser before doing anything this could be very expensive to you.
2007-08-23 03:36:27 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
As a retired person with a personal pension, you are entitled to take tax free cash from your pension arrangement. There are a number of rules that apply dependent upon the type of pension you hold, the value of that pension and any other pension income you may have. Generally speaking, personal pensions offer the facility to take 25% of your fund as tax free cash. However if your pension income is very low, and your pension fund is below £15,000, you may be able to take the entire pension fund as tax free cash. There may be other nuances which apply to your particular personal pension, as such the services of an independent financial adviser should be sought to help you decide the most appropriate solution for your particular circumstances.
2007-08-23 22:03:38 · answer #2 · answered by Unbiased.co.uk 5 · 0⤊ 0⤋
I'm not a pensions expert but I don't think that is possible.
After all, pension funds have a fairly benign tax regime as the government wants to encourage us to save for a pension. The argument would go that you should not have purchased a pension that you didn't need. I'm assuming here that the pension you would like to commute is surplus to requirements.
The only way I can think of to achieve some cash now would be to borrow a lump sum as cheaply as possible and to use the pension income to cover the repayments. But that could be a very costly way to obtain cash.
2007-08-23 02:23:19 · answer #3 · answered by tringyokel 6 · 0⤊ 1⤋
I asume you have already taken the full 25% lump sum allowance ?
If not, contact your Pension Provider (if you have an Annuity it's much too late, howewer if you are still in Income Drawdown there is still a chance).
An annuity is a contract that pays regular sums 'for life' i.e. it's a 'guaranteed' income. So you MAY be able to find some-one who will give you a Loan (or Mortgage) on the basis of this Income ...
Finally, you might be able to convince you kids to take out an Interest Only Mortgage on your house ...
NB. be VERY careful of 'Equity Release' schemes .. these are typically very poor value (in effect they lend you money, charge Interest on the Interest AND charge you Rent on top ! .. end result is they get your house when you die, leaving your kids with nothing).
However if this is your only option, ask your children if they would like to buy your house from you now (instead of it ending up in the hands of the Equity Release merchants)
2007-08-23 20:42:02 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
Here is a site you might check-out.
I know NOTHING about them..
Good Luck
www.jgwentworth.com
2007-08-23 02:47:50 · answer #5 · answered by Anonymous · 0⤊ 2⤋
forget it sat in your rocker and just keep on rocking!!!
2007-08-26 04:34:18 · answer #6 · answered by mister ed 7 · 0⤊ 0⤋