Private pension. I don't understand!

[Mr Tidy]

That's terrible news N4LLY.

Wishing you all the best with the treatment.

Back to Pondrew's topic I really don't understand Private Pensions. I'm so glad mine were all Workplace Final Salary ones.

[TitanTim]

N4LLY. Oh s**t, that is horrible news. Good luck mate, thinking of you!

PS: your Norwich Union SERPS pension should be with Aviva now (mine is). If you want to/ can be arsed give them a call, it will still be there!

Thanks you guy's for the well wishes. Most excellent
Mentally rock solid. Physically a wreck. Weight plummeted. 180 CM tall @ 64 KG

Pondrew, Aviva, that's it. I just chuck the statement in a box. Will check see what last statement read like

Not great to hear, best wishes to you, heartwarming you are sounding so positive

Tim.

[M33 LMO]

I stopped paying contributions quite a few years ago, as put that money into paying off debts instead.
As I can now get 5% on savings/ ISAs, I am putting money in these rather than my pension.

I am now 56 and have been thinking of transferring all funds into a 'draw down' product. I don't need to draw on it yet but would like the opportunity to be there. I have always been a big fan of having any money I have (which has never been much TBH) easily accessible. It has cost me a bit in lower interest but I just don't like money being locked away; just in case.

My largest pension with Zurich doesn't allow me the 25% withdrawal which I don't like.

When you say doesn't allow the 25% withdrawal that you would like I assume that the plan isn't drawdown ready and will require you to transfer to facilitate your requirement for flexible access.

[M33 LMO]

Have a chat with a SOLLA financial guy (Society of later life advisors)
First chat is normally free

I have a financial advisor who keeps calling me every year or so to see if he can make a few quid by "arranging" my drawdown product. I always keep him on the phone for a while asking lots of questions. I am not paying him a penny; his fees are percentage-based which works out to thousands of my pot being thrown at him.
I don't like IFAs to be honest. Every one I have ever dealt with have always recommended products which pay them the most, not which are best for what I want.

I want a drawdown product which is simple to understand and easy to manage. Some of the suggestions my IFA has come up with are so complex for the sake of potentially making a couple of extra quid, which I would be paying ten times over to him for the privilege. No thanks!

It's really sad to hear that is the experience you've had with your IFA. Anything recommended to you should be specific for your objectives and not a shoehorned recommendation into a product that suits the adviser.

When you say products that pay them the most, advisers are on a fee basis for all pension products not a commission basis so the fees are set out by your advisers terms and conditions and are completely negotiable.

What annoys me is clients that will happily waste my time, input and knowledge. So I work on a non contingent charging basis now. You wouldn't do that to a solicitor, accountant or other professional adviser.

If you feel that your adviser is leading you down the garden path just for money then they are a salesman IMO, not a good financial adviser.

[darich]

N4LLY, that's truly terrible news mate. Best of luck in your treatment.

[Pondrew]

When you say doesn't allow the 25% withdrawal that you would like I assume that the plan isn't drawdown ready and will require you to transfer to facilitate your requirement for flexible acces

Yes, I think so. I have other pensions with another provider (Aviva) so may look to transfer all into these when I want to change.

[TitanTim]

Funny mentioning Aviva, I had a private pension with the Norwich Union that I took out in 1990 and for some reason stopped paying into it in 1999 and promptly forgot all about it until Aviva wrote to me ironically just before I retired last April saying what it was worth and what my options were. I kinda discounted it at first as I'd cashed in a life insurance policy with Aviva a few years back and thought they were mistaken . Glad I took the trouble to dig all the old paperwork out and realised I'd taken out a separate pension all that time ago and then forgotten all about it. I wonder how many pensions are out there that people dont realise they have. Wasn't worth a massive amount to warrant a drawdown so decided to cash it in as lump sum and put it towards a new motor. The 6k tax sting was still a bit hard to swallow though

Since retiring you realise how robbing this country is for deciding to work hard all those years. Should have bought a place on a dinghy, be given a roof over my head and be set up for life by kind benefit of the British tax payers

Tim.

[Pondrew]

Since retiring you realise how robbing this country is for deciding to work hard all those years.

Don't know if you have ever had to deal with inheritance tax cos that is a really good one.
A person works all their life, pays income tax, etc, then if they happen to die with more than £325,000 to their name, the HMRC want 40% of the extra.
And if you sell the deceased's property for more than the probate valuation; that's 28% capital gains they take!

My mother died 6 weeks ago and suddenly has become a higher rate tax payer! She never was when alive!

[pvr]

I am doing this in a parallel universe, in a diferent country and stressful is rather an understatement in dealing with any tax authority and the rules around it. Fortunately, not UK so no capital gains and no 40% which is such an insult.

[TitanTim]

Since retiring you realise how robbing this country is for deciding to work hard all those years.

Don't know if you have ever had to deal with inheritance tax cos that is a really good one.
A person works all their life, pays income tax, etc, then if they happen to die with more than £325,000 to their name, the HMRC want 40% of the extra.
And if you sell the deceased's property for more than the probate valuation; that's 28% capital gains they take!

My mother died 6 weeks ago and suddenly has become a higher rate tax payer! She never was when alive!

So sorry to hear about your mum. Mine passed away in 2014 on 17th December so coming upto that time again. I went through all the inheritance tax stuff at the time as I was executor of her estate. I remember getting her house valued and all her belongings and savings and was kinda thankful it fell below the inheritance tax threshold. All that stuff to deal with at one of the worst times of your life. Think I remember filling in all the inheritance tax paperwork but then handed it over to my solicitor to finish it off. Never a great time

Tim.

[Pondrew]

I am doing this in a parallel universe, in a diferent country and stressful is rather an understatement in dealing with any tax authority and the rules around it. Fortunately, not UK so no capital gains and no 40% which is such an insult.

The HMRC rules for inheritance tax are not black or white, though. Even on the .Gov website it reads "you may be able to claim the £500,000 threshold depending on the day of the week or the weather" and "sometimes the higher threshold can be claimed but we don't really know when".

If they don't know for sure, how are we supposed to?

[M33 LMO]

When you say doesn't allow the 25% withdrawal that you would like I assume that the plan isn't drawdown ready and will require you to transfer to facilitate your requirement for flexible acces

Yes, I think so. I have other pensions with another provider (Aviva) so may look to transfer all into these when I want to change.

If you ever want some guidance give me a shout. If one of your existing Aviva plans is drawdown ready and offers a reasonable range of underlying fund choice then you may be worthwhile using one of those rather than someone recommending you a new plan.

[M33 LMO]

I am doing this in a parallel universe, in a diferent country and stressful is rather an understatement in dealing with any tax authority and the rules around it. Fortunately, not UK so no capital gains and no 40% which is such an insult.

The HMRC rules for inheritance tax are not black or white, though. Even on the .Gov website it reads "you may be able to claim the £500,000 threshold depending on the day of the week or the weather" and "sometimes the higher threshold can be claimed but we don't really know when".

If they don't know for sure, how are we supposed to?

It's actually not that complicated, it's just that HMRC don't publish user friendly guidance

I worked as a tax officer for 6 years many many moons ago and honestly HMRC are a shambles. Most of their staff don't have a clue.

[darich]

My mother died 6 weeks ago and suddenly has become a higher rate tax payer! She never was when alive!

sorry to hear about your mum, I lost mine early September to a brain tumour. 7 weeks from diagnosis to passing. A whirlwind and surreal experience. I got to 51 years old with her around so it's taking time to adjust that she's not here.
My DMs are always open if you want to vent or share memories. It can be helpful.

[jock156]

N4LLY Thoughts are with you Buddy! The NHS are great

I hope it all works out well for you