Pension Lump Sum Now, Annuity Later

Pension Annuity Phone Number : 0845 83 87 811

Best Pension Annuity is a trading style of Platinum Financial Consulting
AUTHORISED & REGULATED BY THE FINANCIAL SERVICES AUTHORITY

Can i take my 25% tax free pension lump sum now and take an annuity income later - YES

Your existing provider MAY insist you also take an annuity income if you take a Pension Lump Sum from your existing pension

If so you will need to switch to a pension product that lets you take the lump sum and leave the rest of your fund invested

If you are aged 55 or over then you could release your pension Tax Free Cash

The remaining fund will stay invested and hopefully grow to provide an income for your retirement

You can even use a product that will give you guaranteed growth if you are prepared to leave the fund untouched for a number of years

We have helped many customers release their pension lump sum. WE DO ALL THE WORK FOR YOU !

All customers receive a FREE no obligation quote and information pack that tells you everything you need to know

Over 80% of our customers score us 10 out of 10 for the service we give them *

As part of our commitment to our customers we provide to all customers who request one a FREE quote and information pack.

There is no obligation on you to do business with us, but the information pack will provide all the information you need about taking a 25% Tax Free Pension Lump Sum from an existing pension plan.

The pack discusses :

Taking a Tax Free Pension Lump sum

Taking an Income Later

Managing your fund

Tax & Death Benefits

Risks and Benefits

Guaranteed Returns

Get your FREE quote and pack sent direct to your email account, by completing our on-line form.

	Our customers are asked to score us on how well we live up to our claim of offering a "good old fashioned
personal service via the internet" Over 80% of customers (in fact considerably more) score us 10 out of 10.

Can I Take a 25% Tax Free Pension Lump Sum Now and Take an Annuity Income Later ?


	Become an expert in the UK pensions and annuities market. Our guide is written in clear english and explains in easy to understand terms the issues you need to consider. Get your guide now, if you are retiring now, or the near future or just interested in taking Tax Free Cash.


	A Trading Style of Platinum Financial Consulting
	Authorised and Regulated by THE FINANCIAL SERVICES AUTHORITY

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Some of the most common searches on our website come from customers who want to take a lump sum from their existing pension fund, but don't want or need an income at this stage.

If they are in a typical personal pension plan, they will not be able to take the 25% Tax Free Pension Lump Sum unless they also take an annuity income. However for many reasons taking the income early may not be a good idea. It is worth remembering that your pension fund is intended to provide an income in retirement when you are no longer working.

To help our customers achieve this goal we switch them to a different type of pension contract called an income drawdown policy. Even though the policy is called Income Drawdown you do not have to take an income !

These are sophisticated and flexible plans that help customers achieve a number of financial goals from their pension plan. Releasing Tax Free Pension Cash is one of them.

It is important that customers understand these plans and how they work which is why we provide to every customer who requests a quote a comprehensive information pack that explains everything about income drawdown contracts and taking your Pension Lump Sum.

In fact taking the 25% Pre-Commencement Lump Sum (PCLS) is the easy bit, managing the remaining 75% is the important bit as this is the money that is going to determine the income you receive in retirement. Our pack discusses this in greater detail.

It would not be possible to discuss in depth all the variations and uses of an income drawdown contract on this website. However we do provide all customers who request quotes from us, a very detailed information pack explaining how income drawdown contracts work in detail. Simply request a FREE no obligation income drawdown quote and we think you will be impressed with the information pack you receive.

We also have experienced and qualified staff who would be happy to discuss any scenario you would care to put to them, as well as answer any questions you have.

It is our standard service to offer Income Drawdown without advice and nothing on this website should be considered a personal recommendation based on your circumstances. We do have an advised service for those customers who request one.

Given their complex nature it should be remembered that Income Drawdown contracts are considered to be higher risk contracts than traditional pensions and annuities. You should make sure before you purchase one that it is entirely appropriate for your needs.

Income Drawdown - Benefits and Risks

Like all products, income drawdown contracts carry a number of benefits and risks. The following represents some of the more obvious benefits and risks of a drawdown contract. There may be others pertinent to your situation which are not featured below.

Benefits

You can take all of your benefits at once or just the tax-free lump sum whilst leaving the rest of your fund invested for retirement.

You remain in control of your money invested in the drawdown. It is available for you to manage your retirement income, as you see fit, within the rules governing income drawdown.

The fund remains invested giving you the option to grow it further at a time when you don’t need the income from an annuity.

You can phase the amount of income, if any, that you receive from the fund to ease you into retirement. You can take anything between 1% and 100% GAD, which stands for Government Actuarial Table (GAD) which is a calculation of the percentage of the fund you can take based on your gender and age.

Unlike a conventional annuity, you can still control how the drawdown fund is invested even when you are receiving income.

The fund remains part of your estate. Should you die before the fund is exhausted, it will form part of your estate and therefore pass to your family. Your spouse can use all of the remaining fund to purchase an annuity or similar product. If the fund is taken as a lump sum it will be taxed at 55%.

At any time you can cash in the drawdown contract and buy an annuity* You don’t have to buy an annuity on the day you retire, but can opt to take an income direct from the drawdown contract. This means that you don’t lose the opportunity of impaired health annuities or switching to an annuity should there be a significant rise in annuity rates at a later date. All the while you are in a drawdown contract you still have an “Open Market Option” to buy an annuity.

* If you use a drawdown contract that has a fixed term and you leave the contract before the term expires you may lose any guarantees associated with the contract.

Risks

A pension fund is obviously intended to be used to provide money in your retirement. If you are now taking money from your pension fund before retirement you may seriously erode any income you could expect to receive in retirement. For this reason some drawdown providers will not accept drawdown business if the fund is below a certain amount.

The fund in your drawdown contract is subject to investment market fluctuations. If the funds you select do not perform you could find that the fund has shrunk rather than grown. This again could have a negative impact on your retirement income. It should be remembered however, that if your existing pension plan is also invested in this way, then you are already exposed to this risk.

There is a possibility that if you deplete the fund too quickly you could run out of money in retirement.

If you were to die before you converted the drawdown into an annuity, then the fund would pass to your estate. If your partner or family wanted it as a lump sum it would be taxed at 55%.

Your existing pension may have some guarantees built in that you may lose if you transfer into a drawdown contract. You should check this

, or authorise us to check on your behalf, before completing the switch.

If you are planning to take an annuity at a later date, then should annuity rates decline you may not get as much income as you would have if you had annuitised now.

Pension legislation keeps on changing. We have previously seen legislation introduced in 2006 and 2011. Both of these government bills had positive and negative impacts on income drawdown. At any future point in time a government may again legislate on income drawdown and that legislation may impact negatively upon your plans.

If you want to understand the risks and benefits of Income Drawdown further please call us on 0845 83 87 811 and one of our qualified staff would be happy to explain in detail.

The purpose of these notes is not to turn you away from a drawdown solution, but to make you fully aware of all the implications before you make an irreversible decision.

Drawdown can be an excellent solution for many people, and we have many clients on our books who have used it to make a major impact on their lives.

It is not however an ideal solution for everybody and you must ensure you fully understand all the risks before taking an irreversible decision. If in any doubt whatsoever we strongly recommend you seek financial advice.

Frequently Asked Questions about taking a Pension Lump Sum and leaving the rest of your fund until your retirement

While we specialise in all kinds of retirement planning, one of the most common transactions we perform is releasing a Tax Free Pension Lump Sum from a customers pension, while leaving the rest of their fund invested for later. Typically customers want to use the remaining fund to buy an annuity when the retire.

We also have numerous searches via our website for this type of transaction. The most common searches are listed below. We apologise if they appear a bit repetitive, but we do want to give our customers the best chance of finding the exact answer to their question. Just click the question that is the closest to the one you want to ask.

Can you take 25% pension lump sum at 55 and leave the rest without taking out an annuity ?

Can I take my tax free cash and transfer balance to new pension ?

Can I take tax free cash and just park the rest in a bank annuity ?

Can you take 25% pension lump sum at 55 and leave the rest without taking out an annuity ?

As we say at the top of this page the simple answer is yes, the problem you may have is that your existing pension policy provider is likely to insist that you do take an annuity. But don’t worry, there is a solution. Many people want to realise their Tax Free Cash before retirement but also understand that it would be mistake to start to take an income from their pension too early. Most Personal Pension contracts are set-up to provide both an annuity and a pension lump sum at the same time.

By transferring your pension to a different type of pension plan, we can arrange for you to take your lump sum now, but NOT a pension income or annuity until you want one. By answering just a few questions we can send you an initial quote and information pack that is entirely FREE and places no obligation on you to do business with us. This will explain exactly how this transaction works and how we can help you.

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Can I take my tax free cash and transfer balance to new pension ?

Without knowing exactly what type of pension policy you currently hold it is hard to give a definitive answer, but if like the vast majority of people you hold a private personal pension then you will most probably need to do things in reverse order.

In other words transfer your entire pension to a new pension provider and then take the tax free cash.

The reason for this is that private personal pensions require you to take both your tax free cash and an income in the form of an annuity if you ask them to make this payment. Even if you exercised your Open Market Option, the new provider would have to pay you an income immediately.

To achieve your goal you would need to transfer to a special pension contract that allowed you just to take the tax free cash and leave the rest until later. To be able to do this you must not take the tax free cash until it is transferred to the new provider, as if they are unable to pay the pension lump sum, they can’t accept the transfer.

If you haven’t guessed it yet, that is exactly what we do. The service is efficient and quick and we do all of the work for you. The first thing to do is complete our simple on line quote form. With your quote we send you a FREE information pack that explains in very simple language how this transaction will work. To request your free no obligation pack just click here.

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Can I take tax free cash and just park the rest in a bank annuity ?

We assume by the phrase “just park the rest” you mean to leave the remaining capital, (the amount that is left after taking tax free cash) untouched until a later date. You can certainly do this, but an annuity would be the wrong tool to use. By default an annuity is a product that provides a regular income whether the fund comes from a pension fund or some other means.

The idea of just taking the tax free lump sum before retirement and having the option of buying an annuity when you retire is an attractive option for many customers. We have helped many of them do exactly that. To achieve this objective you will need to use an alternative type of pension product called Income Drawdown.

We provide to all customers who complete our on-line form, a bespoke quote and a FREE comprehensive information pack that tells them everything they need to know about how to arrange this type of transaction. There is no future obligation to use us, so why not request your pack now !

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The information contained on this website is for information purposes only.

This website DOES NOT contain personal advice based on your circumstances.

Platinum Financial Consulting
The Old School House, East End Road
Bradwell-on-Sea, Essex, CM0 7PY

FSA Registration Number : 227014

Pension Annuity Specialists