fred123456
Registered User
- Messages
- 53
Hi all,
Hopefully someone can help, let me give some background first
I have a number of pensions from my private sector and I am thinking about drawing down on 1 of these pensions and taking a cash lump to pay towards a mortgage. ( I am just turned 50 and never accessed any pension before, also I am investing now in the public sector AVC)
The pension pot I am looking at was for 15 years in a previous employment I left almost 8 years ago. I paid 12% and the company paid 6% into the pot (i did not make any other avc into this pension only what was taken from my salary monthly).
I requested from the pension provider AON a statement of my options on leaving service and turning 50. The following are the three main areas of drawdown that i am considering
(1) Cash Lump Sum ((25% of the value of your Retirement Account - which is not what I was hoping)) & Invest in ARF. lump sum tax free up to 200,000.
(2) Cash Lump Sum of 1.5 times final salary + invest the rest in the ARF - this is what I would love, however I think this must be a mistake of an option as I did not put extra money in over the term at the end of the year as AVC.
(3) Cash Lump Sum of 1.5 times final salary + invest the rest in the Annuity - this is a disaster by the looks of it.
Here is the fine print I found, I asked an advisor just general chit chat and he said but you did not have AVC so this is not an option. However I just want to double check with anyone else in the know.
Fine Print:
However, if you only invest the value of your AVCs in an ARF, your Cash Lump Sum must be based on employer service and final salary. You would not have the option to choose a cash sum of 25% of the value of your Retirement Account. Please refer to Invest AVC's in ARF below.
Hope this is not too confusing and may be a genuine mistake by AON.
Kind Regards
Fred
Hopefully someone can help, let me give some background first
I have a number of pensions from my private sector and I am thinking about drawing down on 1 of these pensions and taking a cash lump to pay towards a mortgage. ( I am just turned 50 and never accessed any pension before, also I am investing now in the public sector AVC)
The pension pot I am looking at was for 15 years in a previous employment I left almost 8 years ago. I paid 12% and the company paid 6% into the pot (i did not make any other avc into this pension only what was taken from my salary monthly).
I requested from the pension provider AON a statement of my options on leaving service and turning 50. The following are the three main areas of drawdown that i am considering
(1) Cash Lump Sum ((25% of the value of your Retirement Account - which is not what I was hoping)) & Invest in ARF. lump sum tax free up to 200,000.
(2) Cash Lump Sum of 1.5 times final salary + invest the rest in the ARF - this is what I would love, however I think this must be a mistake of an option as I did not put extra money in over the term at the end of the year as AVC.
(3) Cash Lump Sum of 1.5 times final salary + invest the rest in the Annuity - this is a disaster by the looks of it.
Here is the fine print I found, I asked an advisor just general chit chat and he said but you did not have AVC so this is not an option. However I just want to double check with anyone else in the know.
Fine Print:
However, if you only invest the value of your AVCs in an ARF, your Cash Lump Sum must be based on employer service and final salary. You would not have the option to choose a cash sum of 25% of the value of your Retirement Account. Please refer to Invest AVC's in ARF below.
Hope this is not too confusing and may be a genuine mistake by AON.
Kind Regards
Fred
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