Pension advice

Rannoch · 13 Feb 2024 at 15:47

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

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.

Rannoch · 13 Feb 2024 at 16:04

randomshenans said:
Thai ladyboys cost you a fair amount when they want a nice little life, huh?

If that’s your thing that’s cool. Did they fleece you?

Rannoch · 13 Feb 2024 at 19:03

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.

He worked with the bank from 1990 until 2000.

Rannoch · 14 Feb 2024 at 11:58

Brando said:
He needs an advisor, that's complicated and will be dependent on lots of things.

That’s what he’s going to do. No loans from my other brother also

Rannoch · 14 Feb 2024 at 21:36

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.

Thanks for the advice I will pass this on.

Rannoch · 11 Jul 2024 at 14:27

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.

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 · 11 Jul 2024 at 16:49

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

absolutely