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Roydo
Posted: 30 November 2012 22:42:01(UTC)
#11

Joined: 10/02/2012(UTC)
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The ssinnic;17035 wrote:
I feel this discussion has been positive and helpful: however, I also have some reservations and am unclear about this business of "splitting" the funds into separate arrangements.That's because I have heard or read that some pension scheme providers arrange the "policy" ( I call it that because that's what most people understand but actually if the fund is with ,say, a Platform like Transact (as example) it's not actually a policy as such but a fund managed by a recognised provider to HMRC) into segments of £1.each for maximum flexibilty. I am a retired IFA and a bit out of touch with things nowadays, but wonder if you would be so good as to add further comment on this:

I have a fund of, let us say, £800000. It has had no withdrawals of any kind to date. It has been accumulated with contributions + transfers from other schemes both FS and DC and of course is self-invested in cash, shares and units.It has enjoyed some growth. It is with a Platform. So can I do any of these;

1. take tfc of .say. £50K and leave rest of fund to accumulate (750000)..........if so does that remaining fund still have tfc entitlement and if so is it expressed as a %age of the fund value? Is the £50K already taken deducted as a sum or is it back-worked to represent a %age? Is that remaining fund moved by my provider to some other title and is it now called something else?

2. Take max TFC £200K and leave rest to accumulate (I think I can)

3. If I do 1, and come back in 2 years time and the £750K is now £1,750,000 (!YES) can I now get 25% of that (£1,75M) = £437500 tfc less the original £50K taken 2 years ago in 1......i.e £387500 tfc?

This is beginning to look like a test paper for an advanced Planners Course!!

Thank you for the responses so far, both of you!


As it is now getting late, my response will be short.

1. Taking £50 tfc means crystalising £200k, so £600k left untouched. 25% available of this residual fund.
2. Yes,
3. No. Not quite. LTA, possible protection in place.

Call me.

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The ssinnic on 01/12/2012(UTC)
The ssinnic
Posted: 30 November 2012 23:59:50(UTC)
#12

Joined: 09/02/2012(UTC)
Posts: 15
Yes but how?
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Roydo
Posted: 01 December 2012 00:08:24(UTC)
#13

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The ssinnic;17037 wrote:
Yes but how?


01275 849806
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The ssinnic on 01/12/2012(UTC)
The ssinnic
Posted: 01 December 2012 09:55:26(UTC)
#14

Joined: 09/02/2012(UTC)
Posts: 15
Thanks. Is there a good time to ring you? It's saturday. I am retired so that's not a prob for me, but I suspect you may be an IFA and this is a weekend so I'll ring you mid am on monday if that's ok.
I see your'e a ciderman!
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Roydo
Posted: 01 December 2012 10:12:16(UTC)
#15

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Thats fine. Speak to you then.

In the area, but cant stand the stuff!
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jeffian
Posted: 01 December 2012 11:41:42(UTC)
#16

Joined: 09/03/2011(UTC)
Posts: 954
Thanks, Roydo,

"How do you think divorce settlements would cope if they couldnt be?"

After 36 years of wedded bliss(!) it's not a subject which has ever entered my head. If it had, the experiences of my friends who have been through it and universally ended up significantly poorer, would have quickly extinguished the thought.

As My Old Mum has always said - having been widowed rather too young - "I may be miserable, but I'd rather be rich and miserable than poor and miserable". Wise woman.

8-)
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Roydo
Posted: 01 December 2012 14:07:26(UTC)
#17

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Glad to hear it Jeffian!

Point I was making is that pensions are often split due to divorce settlements, which can result in a provider having to comply with a court order to transfer part of a pot to the other ex spouse.

Not really any different than doing what I explained can be done; just providers tend to hide behind "their" rules!
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Andrew Barwick
Posted: 02 December 2012 09:08:48(UTC)
#18

Joined: 23/10/2008(UTC)
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Roydo has just given us a series of clear jargon free explanations about a complicated subject which would allow anyone to check just how flexible (and knowledgeable) their pension provider is and maybe change provider if they fall short.

Great stuff - thanks Roydo
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The ssinnic on 03/12/2012(UTC), Guest on 19/12/2012(UTC)
The ssinnic
Posted: 02 December 2012 15:12:14(UTC)
#19

Joined: 09/02/2012(UTC)
Posts: 15
I arrive at a number of conclusions:

Many inurance/pension companies only allow certain actions if it suits them.

Many insurance/pension companies interpret the "rules" to suit them.

Many insurance/pension companies interpret the "rules" incorrectly.

The "rules" are open to interpretation in some aspects.

Main conclusion:
I wish I'd saved for my retirement in a different way from a "pension"!!!

Second conclusoin:
To be in the hands of others and their interpretations at a time when it's too late to do anything else (i.e in your dotage) demonstrates very bad planning on my part!I

It's all very well suggesting "change your provider" but in practice this is hardly likely or possible.
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Guest on 02/12/2012(UTC)
The ssinnic
Posted: 03 December 2012 12:01:39(UTC)
#20

Joined: 09/02/2012(UTC)
Posts: 15
I must say to everyone who has read this post that having had a personal discussion with Roydo on the subject I come to another conclusion:

that Roydo knows his stuff and deserves a special mention. He has a very good understanding of this matter.

I feel entitled to say this as I am neither a journalist with an axe to grind, nor a practisinng IFA (any more) and represent no insurance or pension provider. Nor will I get a fee or pay-back.
It would be fantastic if Roydo has the time to summarise this thread because it is clear that a lot of us have been and still are relatively unclear about what can be done.

So if you (R) have the time or inclination I hope R will be able to respond and summarise.

I hope also that those involved can remain anonymous and impervious to malice, legalities, FOSisticities and FSA repercussions!

Thanks to all.

SS
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2 users thanked The ssinnic for this post.
Guest on 19/12/2012(UTC), Zippy on 05/02/2013(UTC)
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