I have an old company pension and have decided to take a SMALL lump sum next year (WHILE I'M STILL YOUNG ENOUGH TO ENJOY IT) and was wondering if anyone knows roughly how long the process takes. I am hoping to have the funds by the end of next year.
2007-11-18 23:43:18 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Felt the need to add I'm not wanting to unlock the whole amount - just a four figure sum (which no one will lend me as I'm not a home owner).
2007-11-19 00:08:59 · update #1
Most Company schemes take months to do anything .. why not ask the Scheme Trustees ? (instead of posting duplicate questions here)
As already explained, you have to Retire in order to get ANY lump sum ... and to Retire you have to be 50 (or over) now (or reach 50 before 2010 .. after 2010 you must be 55 to Retire Early = as laid down by Government legislation).
If the Company Scheme does not permit Early Retirement you will have to Transfer your Benefits into a Private Scheme ...
You can take up to 25% as a Tax Free Lump Sum when you Retire. Assuming you have not Transferred, the rest has to be used to purchase an Annuity (Pension) which starts paying out immediately .. (most people take the whole 25% even if they don't need it right away & put spare funds into an ISA)
IF you transfer into a SIPP (Self Invested Pension Plan) first THEN when you Retire you have the option of leaving your funds invested (instead of buying an Annuity) - I believe you still have to take some small Pension out of the funds (it's known as Drawdown)
MOST SIPP's allow you to 'split' the funds - if you don't want to take the whole 25% Tax Free Lump Sum now, you split the funds and Retire from one part (and take Lump Sum from that) whilst leaving the rest invested (so you can take the Lump Sum from that part later).
Go talk to a SIPP adviser at eg. Barclays Bank ..
2007-11-18 23:56:16 · answer #1 · answered by Steve B 7 · 2⤊ 2⤋
I am just in the middle of sorting this out for a customer of mine. Firstly it depends if it is a company pension scheme or a private pension. If it is a private pension it should take less than 8 weeks from start to finish for this type of arrangement you should speak to an IFA who should be able to sort it all out. If it is a company scheme speak to the scheme administrators who will be able to guide you further.
Good Luck. and remember that by doing this you could seriously affect the value of your fund when you need it.
2007-11-19 01:13:43 · answer #2 · answered by taz man 3 · 0⤊ 1⤋
listen to steve he is right on and gets a thumbs up!!!
2007-11-22 02:24:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋