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Advice from any Financial Advisor ( Pensions) (Cash Lump Sum)


oldypigeonpopper
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hello, just thought there might be a member on above who can help, i have a previous work pension with Friends LIfe which i could have taken but as not a big amount decided to leave until after April when they said i would be able to have as a lump sum less tax due to new goverment rules, so i phoned Friends Life at the Salisbury office after April 1st asking the financial officer to release the money and they said i now cant have as lump sum but i can have it put into a pension scheme, they said they are still waiting on the directors of the company to reply to see if i can have as a lump sum but i think thats bull. as many know with such a small amount of capital the pension is worth a loaf of bread a week.!!!! are they right to with hold ????. cheers if anyone can help.

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I went through the process earlier this year and found out its a big mine field. I eventually got something's sorted but I did not actually cash in my pensions but took a small drawdown tax free and transferred 2 dormant pensions into my current personal pension.

If you look for Bentos on PW and drop him a PM he was very helpful and gave me some good general advice, although nothing to do with the actual funds and investments. The government web pages give you lots of information, it is just trying to work out what is best for you. It may be in your interest to speak to an adviser who should be able to answer questions but if he/she start to look into your funds that's when an adviser may charge you for the advice. I very nearly made a mistake by initially thinking of doing it myself and contacting the pension fund asking for the lump sum to be paid out that would have cost me in terms of tax relief and what I am continuing to pay into my current pensions.

As I said its a minefield so be careful these new rules are going to catch people out.

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Not quite the same but to do with pensions non the less.

I am already in receipt of two pensions from the civil service pension provider, one at £40 a month and the other at just over £200 a month.

I have heard and read so much about the cashing in of pensions but wasn't sure as to whether it also covered pensions already being paid.

So I enquired as to whether I could commute the lower pension as I thought the paper work involved for the lower sum must cost as much as the sum being paid out.

I was told over the 'phone that I could and a form was sent for me to fill out, but after I submitted it, I received another letter saying that as I was in receipt of the higher pension and my old age pension I was not allowed to commute the lower pension.

Can anybody understand the logic of that ?

Edited by EMcC
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A friend of mine has within the past couple of weeks had paperwork from friends life and in the pack is a small lump sum request form which they say if your fund value is less than 10,000 pounds you should be able to withdraw the whole amount less a certain amount of tax.I don't know anymore than that but it would show that you get your money.

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A friend of mine has within the past couple of weeks had paperwork from friends life and in the pack is a small lump sum request form which they say if your fund value is less than 10,000 pounds you should be able to withdraw the whole amount less a certain amount of tax.I don't know anymore than that but it would show that you get your money.

thankyou bostonmick, yes i did have that form and was told by friends life to wait until after april 1st and i could get cash lump sum less tax, but when i contacted again mid june they refused to do and said i had to take as a pension, it is less than £10,000. i shall see what Lloyds say tomorrow.

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  • 1 month later...

just to follow up on my previous post regarding my friends case of cashing in his old pension as a small lump sum.he informed me today that he has had a letter today from friends life confirming they have paid just under 6k into his bank so persevere as it should be worth it.the only difference as I can see is his was not connected to a works scheme but was a private arrangement,however I should not think that would make any difference.hope you get sorted.atb

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Contact a good financial adviser I took the biggest lump sum put some in property and have the rest invested with a good one who is on the ball. But being a Scotsman did my homework first by that I mean spoke to friends who used him they will ask you loads of questions but all aimed to do the best for you

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