Pension Freedoms, anyone taken advantage?

[Teh Wal]

First off if you're still in the mob it's probably not worth reading the rest of this as it applies to us old kn4ckers who've been out long enough to build up a pension pot with a civvy company. However it might be worth bearing in mind for the future (maybe).

So, fellow old kn4ckers, have any of you taken advantage of the Pension Freedoms that kicked in 3 years ago?

https://www.pensionwise.gov.uk/en


A bit of background... I left the mob back in 2008 and spent the next 7 years with a civvy company who paid into a defined contribution pension for me. The pot built up to a substantial amount before I left the company where upon no more contributions were paid into it. I've now decided to utilise some of the dosh (i.e. 25%, the tax-free bit) to help financially with an extension to my house, and put the rest into a drawdown pension or similar that I do not intend to start receiving until I actually retire - I'm only 55 and still 10 - 12 years away from proper retirement by the way.

I engaged with a certain company, to see if they could facilitate my wishes. They don't ask for any money up front, only if you take them up on their advice and allow them to shuffle your money around for you. Their suggestion pack came back to me, however they are going to grab, what I consider to be, a massive sum for providing the initial shuffle around and then a substantial sum for the remainder of the life of the pension. I appreciate that I'm going to have to pay some charges to a company for what I ask but I figured that some of you guys may have gone through this and may have some advice and/or recommendations of companies that did what you wanted without being robbed at the same time.

 

[Vauxhall]

Just to be clear, the opportunity to cash in your pension pot for a lump sum does not apply to any of the public sector schemes.

I get lots of veterans asking whether they can have a single lump sum and I have to disappoint them.

 

[busby1971]

I think the great pension “cash in” will be the next PPI scandal as people spend or miss invest their funds on release.

I’d also strongly recommend ignoring any experts who cold call you with some great advice/deal.


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[FOMz]

I'd spend it all on strippers and special lady friends of the night if I did that.. I'm leaving it where it is so the Long Haired Dictator can keep an eye on it

 

[Teh Wal]

I'd tend to agree with you Busby regarding the cold calling bit, in this instance I approached them.
I did approach a small local IFA company (I won't name them this time ) but they wouldn't facilitate my needs. They made a company decision back in 2015 not to assist with this kind of thing because they fear that in later life there is the potential for customers to blame them if the customer loses money on investments. However the blokey I chatted with said that larger companies are willing to do it probably because they may be able to "absorb complaints/loses/etc".

I think it is a good opportunity as long as the individual concerned understands the potential long term consequences of their future investment; I gave it a great deal of thought and see my circumstances as ideal. I view that particular pension as a supplementary or supernumerary pension - it is (or will be) at least secondary to my ex-military (which I'm already in receipt of) and state pensions. Given that I will have at least one other civvy pension built up over the following 13 to 15 years (i.e. since contributions into it ceased) through employment with other companies I consider it to be even further down the list of importance and so dipping it into it now will make no great difference to my financial wellbeing in later life. Hence why I feel it is a good opportunity, particularly for ex-mil people who have that immediate pension/EDP safety cushion.

So, no-one else out there in the same/similar circumstances?

 

[Keyser Söze]

Just to be clear, the opportunity to cash in your pension pot for a lump sum does not apply to any of the public sector schemes.

I get lots of veterans asking whether they can have a single lump sum and I have to disappoint them.

Obviously you know far more about this than I, however I'm sure I saw a TV program concerning a police officer cashing in his pension for some sort of property investment in Cape Verde. he was on tele bemoaning his get rich quick scheme failed, and he lost the lot

https://www.thesun.co.uk/news/69444...ut-because-police-bosses-failed-to-do-checks/

 

[busby1971]

Obviously you know far more about this than I, however I'm sure I saw a TV program concerning a police officer cashing in his pension for some sort of property investment in Cape Verde. he was on tele bemoaning his get rich quick scheme failed, and he lost the lot

https://www.thesun.co.uk/news/69444...ut-because-police-bosses-failed-to-do-checks/

And he received compensation as well didn’t he, pretty sure he wouldn’t have paid it back if it had made money, which it never was going to.

Everyone’s circumstances are different and offers will change, Mrs B71 worked for a company for only a short while, when she left they offered to give back her pension contributions, at the time we decided not to bother as we would have lost the Company contribution and we would have had to pay tax on the refund.

About a month ago we got a letter saying the scheme was closing down and she had a couple of options, one of which was having it paid out. We would have got about £500 originally and now they’re going to give us £2000, they won’t be taking the Company payments back, and as the good lady doesn’t work anymore we won’t pay a penny in tax either.

As in most circumstances it’s all about timing and what’s right for you at the time, rather ironically we needed the £500 more back then than we do the £2000 today.

I have one mantra from my Resettlement Financial Briefing that sticks in my head, lump sums come and go, income keeps repeating. Something I’ve found to be very true.


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[Keyser Söze]

the link I used in my post was just an example since I could nt find the Cape Verde clip. I was attempting to show that (some) public pensions can be brought forward into a lump sum. Perhaps our mil pensions are treated differently of course as Vauxhall suggests - I believe Vauxhall knows far more than me on this subject.

 

[Gonterseed]

... Their suggestion pack came back to me, however they are going to grab, what I consider to be, a massive sum for providing the initial shuffle around and then a substantial sum for the remainder of the life of the pension. I appreciate that I'm going to have to pay some charges to a company for what I ask but I figured that some of you guys may have gone through this and may have some advice and/or recommendations of companies that did what you wanted without being robbed at the same time.

Speak to the free pensions service and/or the citizens advice people to make sure you've got the right angle on everything that is possible to do and then get quotes from at least 3 registered financial advisers for what you think the best option is.

 

[Teh Wal]

Speak to the free pensions service and/or the citizens advice people to make sure you've got the right angle on everything that is possible to do and then get quotes from at least 3 registered financial advisers for what you think the best option is.

Cheers mate, good advice. I've had a few weeks to do more checking up on things and have got a more refined idea of the way forward now.