How to get the cash out of your Pension

Post by **clv101** » 17 Jul 2007, 00:18

Interesting point is since we invaded Iraq stocks have been going great! Far more value has been added to stocks than the cost of the war.

SunnyJim · Post by **SunnyJim** » 17 Jul 2007, 00:40

I've moved all mine into a SIPP. I still pay into the company pension as the company match my pound with two pounds. It's all invested in a cash fund although after transfer to a SIPP there's not much left in it.

I'm interested that someone said that a company has to pay into you personal pension if you have one though. Any more details? I'd much rather have it paid into my SIPP than paid to the HSBC fund they have set up.

Post by **kenneal - lagger** » 11 Sep 2007, 20:30

I've just had a financial advisor around to talk about transferring my pension to a SIPP and investing in land and he asked "What happens when the pension matures and you have to sell the land to take out an annuity?" As I would want to keep the land, I obviously don't want to dispose of it.

In my case this would be in 2 years time when I'm 60 or 17 years at the latest when I'm 75. Anyone know the answer, please?

Regards

Ken

SunnyJim · Post by **SunnyJim** » 11 Sep 2007, 21:50

I don't think you actually HAVE to cash it in do you? You can continue to rent out the land and live off the profits via draw down?

I'm guessing here, but I would think a decent SIPP company would know the answer. I use IPS in Bristol.

snow hope · Post by **snow hope** » 24 Oct 2007, 15:02

Just sent the second letter confirming I want to cash in my second and last Endowment Policy, taken out 19 years ago....

Although this policy has less than 6 years to run, I don't consider there is any chance the markets will not sink drastically in this time-frame and thus feel it is simply far too risky not to cash it in.

I will use the money to pay off some debt and to purchase either a Wind turbine and/or some Solar Hot Water panels in order to generate some renewable electricity and/or hot water. I really want to do both.

I feel a sense of relief having taken these actions.

Bedrock Barney · Post by **Bedrock Barney** » 24 Oct 2007, 22:35

Cashed in my two endowments earlier this year.

Now looking at my pension fund. Just bought this book:

http://www.taxcafe.co.uk/taxfreeproperty.html

Haven't ready it yet but hoping it will give me some decent info.[/url]

snow hope · Post by **snow hope** » 24 Oct 2007, 22:40

Hi BB. I feel that property is way over-valued at the moment and is likely to drop considerably from the current high-point. Be very careful........

Post by **kenneal - lagger** » 25 Oct 2007, 00:02

Property may be overvalued but god ain't makin' any more land. Bare alnd is worth investing in provided it is close to you and you can protect it and its contents. Land prices may drop but not as much as your pension will.

I contacted ISP earlier today, thanks Jim. You have to liquidate your pension fund either as you retire or by the time you are 75 and buy an annuity with the proceeds. I think I will solve that problem when the time comes. Hopefully I can sell it to my ecovillage, as that should be up and running by then (15 years time at the latest). That's assuming there is anyone still governing pension regulations then.

Bedrock Barney · Post by **Bedrock Barney** » 25 Oct 2007, 20:57

snow hope wrote:Hi BB. I feel that property is way over-valued at the moment and is likely to drop considerably from the current high-point. Be very careful........

I work in the construction industry and totally agree with you on the value of property.

I'm much more interested in the acquisition of local woodland/farmland. Not too bothered about a great annual return on the investment. Just want to get the money out of some dubious equity investment into something more tangible. I have very little faith in my fund being worth what the Norwich Union is currently telling me when I get round to retiring.

Smithy · Post by **Smithy** » 27 Oct 2007, 12:52

This could be handy regarding SIPPs (small aside on problems relating to Iran):
http://www.dailyreckoning.co.uk/article ... s0569.html

A note for any UK readers, who have taken their retirement savings into their own hands with a self-invested personal pension (Sipp). The one bit of your savings you couldn?t put into your Sipp has been those ?protected rights? funds that have accumulated from opting out of some state pension benefits. Well, now you can say providers Suffolk Life who advise they have come up with a cunning new plan to accept them. Some tax money back and you get to invest it too. Sounds like progress.

I haven't looked into this (yet).

It seems to me that using a SIPP would be more cost effective for a group..., but then again it is `self invested`.

Bedrock Barney · Post by **Bedrock Barney** » 04 Nov 2007, 10:54

Well, I haven't created a SIPP account as yet but I did ring Norwich Union on Friday and have now transferred my equity based pension funds into a single cash deposit fund. Apparently it's returning about 5.25% at the moment which is fine whilst I take stock.

After some enquiries elsewhere it seems that a SIPP purchase of land/woodland/specific commercial property is relatively expensive (fees and charges) and requires the SIPP Trustee's agreement (which would not necessarily be forthcoming)

PaulS · Post by **PaulS** » 04 Nov 2007, 11:17

Don't worry about trustees not approving your proposed purchase. They are there simply to make sure you invest the fund legally, i.e. not in residential property or in your own business, or art, etc whatever the other exceptions are.

We have negotiated all-in fees with our pensioneer trustees of ?500/year. Still a lot, but manageable as long as the Sipp brings in more than that in return (grass fees, rental etc)

Ippoippo · Post by **Ippoippo** » 13 Nov 2007, 16:46

Right.... been far too long doing this (my company got brought out by a larger one... lot's of HR stuff causing things to move far too slowly).

The good news is that new advisor is much more clued up than previous one (though he's not a Peak-Oiler).
The other good news is that our company pension is a Group SIPP, meaning I have a SIPP now anyway.
For now, I'm transferring my current pot into Bonds/Gilts. Protect it a bit... need to get the land thing sorted now.

Was good to hear the advisor say to me that he's considering getting his pension out of the stock market too as 'he hasn't a clue what the hell is going on there at the moment'. OK, he doesn't understand the root cause (though my casual dropping of Peak Oil into the chat trigger something... doubt it)... but he can see the Stock Market going belly up as well.

Right... where can I buy some land!?

RenewableCandy · Post by **RenewableCandy** » 13 Nov 2007, 17:22

GavinT wrote:
Right... where can I buy some land!?

Pity, you've just missed Vortex's sale, and with it the chance to get to know his delightful neigbours

littlejimmy · Post by **littlejimmy** » 13 Nov 2007, 21:34

Apologies if this is a really styowpid question:

Is there any way I can use my pension fund (including a large portion of protected rights) to pay off debts? If not, why not?

I had a load of pensions just floating around (having been a bit of a job hopper), and have a few debts that would be cleared if only I could use the pension money.