Pension advice

Rannoch

Rannoch

Rannoch

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My brother is 55 shortly and has a pension with FINAL SALARY PENSION SCHEME. He worked for the a bank for 10 years and they transferred his pension to Lloyds when they took over the Bank of Scotland.

The question is can he withdraw part of his pension when he’s 55? He lives in Thailand but he’s using my address for contact details :D

I should add he’s asking to borrow money from my other brother as he’s adamant he will get 25% of his pension out his he’s 55.
 
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Final salary and CARE pensions normally require above a certain number of years service before you will see the full benefit of them. No doubt he will get a fraction depending of lenght of service but yeah; he should be able to take a lump sum tax free at 55 assuming it's quite an old pension scheme with it being a final salary pension.
 
slinxy said:
Final salary and CARE pensions normally require above a certain number of years service before you will see the full benefit of them. No doubt he will get a fraction depending of lenght of service but yeah; he should be able to take a lump sum tax free at 55 assuming it's quite an old pension scheme with it being a final salary pension.
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He worked with the bank from 1990 until 2000.
 
Rannoch said:
he’s asking to borrow money from my other brother as he’s adamant he will get 25% of his pension out his he’s 55.
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No, if he's entitled to the money, he should wait until the money is in his account, not borrow it from someone else based on promises.
Do not, ever lend money to family. If you give it - it's a gift. Your brother is a fool if he does this regardless of guarantees and promises.
 
Raumarik said:
No, if he's entitled to the money, he should wait until the money is in his account, not borrow it from someone else based on promises.
Do not, ever lend money to family. If you give it - it's a gift. Your brother is a fool if he does this regardless of guarantees and promises.
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Tell me about it; i refuse to lend/give any more money to a certain brother of mine.
He seems to want to gamble with my money; when he win's he keeps the winnings and if I'm lucky I get the money I lent him back. When he loses; well I never see that money again. :rolleyes:
 
He won't be able to take 25% cash at 55 and leave the rest to take at a later date. In a final salary scheme, the PCLS has to be taken at the same time as the pension.

The alternative is to transfer the pension to a DC scheme, which would allow him to drawdown. But he would need an IFA to sign off on it and agree that it is in his best interests.
 
KingOfTheDaves said:
He won't be able to take 25% cash at 55 and leave the rest to take at a later date. In a final salary scheme, the PCLS has to be taken at the same time as the pension.

The alternative is to transfer the pension to a DC scheme, which would allow him to drawdown. But he would need an IFA to sign off on it and agree that it is in his best interests.
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Thanks for the advice I will pass this on.
 
Just to up
KingOfTheDaves said:
He won't be able to take 25% cash at 55 and leave the rest to take at a later date. In a final salary scheme, the PCLS has to be taken at the same time as the pension.

The alternative is to transfer the pension to a DC scheme, which would allow him to drawdown. But he would need an IFA to sign off on it and agree that it is in his best interests.
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Got the letter from Lloyds last week. There were three options. Cash + reduced pension, full pension or transfer. He is going for the cash and reduced pension.
 
Rannoch said:
Just to up


Got the letter from Lloyds last week. There were three options. Cash + reduced pension, full pension or transfer. He is going for the cash and reduced pension.
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I would always take cash + reduced pension as I looked at mine and the lump sum would take for me to live over 30 years after retiring to break even with the differing amounts, better to have the cash in 'your' possession and then if you need it you have it, alternatively you could blow it and have no cash and a reduced pension :cry:
 
I am not a financial advisor but there's are alternative ways to create income from a pension while making maximum use of your 25% tax free allowance. I can't remember the specifics but it involves only "crystallizing" small parts of your pension at a time, and taking 25% of each part tax free at a time. The idea is that this allows you to be more tax efficient, and leaves a larger amount invested, which will in turn allow for larger growth, which then allows for higher security and ability to have a larger average drawdown over time.

:edit: lol did not read thread properly, final salary schemes have complications.
 
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Maundie said:
I would always take cash + reduced pension as I looked at mine and the lump sum would take for me to live over 30 years after retiring to break even with the differing amounts, better to have the cash in 'your' possession and then if you need it you have it, alternatively you could blow it and have no cash and a reduced pension :cry:
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absolutely :D
 
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