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Pension plans

Pension plans

Is it possible or desirable to sell a personal pension plan not yet in payment where the policyholder is 55 years oold?

There is a market for endowments but is there a market for pension policies?

As always, thanks in advance.

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By jbayman
29th Nov 2012 16:25

Selling Pensions

No - it is not possible

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29th Nov 2012 16:59

What do you want to do?

What are you looking to do?

There are ways of extracting funds from your pension, but there are so many ifs and buts etc to consider it is not cheap to do and is only worth it if it is a nice pot.

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30th Nov 2012 03:57

@ Fidodido  Either sell

@ Fidodido  Either sell/assign the entire fund before annuity is purchased or put the fund into drawdown/annuity and receive a single payment now for future pension payments.

 

Fund value approx £100K

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By jbayman
30th Nov 2012 17:40

Pension

If we are talking conventional / legal ways of getting all the cash out now then your options are very limited. 

In any event your client can take up to 25% of the fund as tax free cash now as he/she is over 55. However the only way to safely take it all as cash now would be to go into flexi drawdown. However to do that you need to have at least £20k p.a.paid as secured pension (i.e. from an annuity or from an employment pension). Any excess over the 25% will be taxed as income.

If your client does not have the secured pension then you are stuck with the 25% cash with the rest applied as income - either through an annuity or through drawdown. The income can be deferred however. 

There are some dodgy schemes being punted (usually by offshore "advisers") which claim to let you have the full lot out, but HMRC are clamping down on them and I would not touch them with a barge pole. 

If you did take all the cash out you would face an unauthorised charge of 55% of the proceeds.

Your client cannot asign or sell the fund.

 

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