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November 18 2019 9.50am

UK pension question(s)

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View twist's Profile twist Flag Miami, Florida 16 May 19 8.58pm Send a Private Message to twist Add twist as a friend

Howdy, lived in UK til 1994 then moved to the states. I left behind me 5 years of private pension. Not a huge amount at the time, but its accumulated over 25 years.

I am told that i have to wait til im 55 to touch it ?
I seem to remember something that i could do at 52, but cant find any info on it now. Last time i checked was like 8 years back so things might have changed.

Any pension experts that can recommend ?

I would bring it over here and conver to 401k if i could, but am told the US does not allow. So am i stuck leaving it in UK ?

If i took lumpsum now, would i get serious hit ?

Cheerz.

 

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View chris123's Profile chris123 Flag hove actually 16 May 19 9.01pm Send a Private Message to chris123 Add chris123 as a friend

I had to wait until 55.

 

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View davehuggins's Profile davehuggins Flag 16 May 19 9.06pm Send a Private Message to davehuggins Add davehuggins as a friend

55 is correct

 

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View YT's Profile YT Flag Oxford 16 May 19 9.27pm Send a Private Message to YT Add YT as a friend

Yep 55.

 


Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes)

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View YT's Profile YT Flag Oxford 16 May 19 9.35pm Send a Private Message to YT Add YT as a friend

On reflection, some pension schemes may allow access before age 55, where a 'protected pension age' existed as at 6 April 2006. The administrators of the scheme will be the ones to confirm whether this is so in your case. You have however said "I've been told" that 55 is the earliest. Who told you this?

What type of pension scheme were you in? Salary-related or money purchase/defined contribution?

Also, who has told you that you can't transfer to a scheme in the USA?

 


Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes)

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View ohioeagle's Profile ohioeagle Flag Valley City, Ohio 16 May 19 10.26pm Send a Private Message to ohioeagle Add ohioeagle as a friend

I have just had the same questions that I put to Sun Life of Canada last week. I got my forecasts today and on the Policy details it states:
"You can start to take your retirement benefits at 55. If you cash or move pension savings earlier than planned, we will reduce the value by the amount of fees left to pay (Early Exit charge). Over 55 years of age this is 1% of pension, under 55, they cap at 5% of pension."

 


Alec 'AJ' Brown
49yearswearingredand blue


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View twist's Profile twist Flag Miami, Florida 16 May 19 10.59pm Send a Private Message to twist Add twist as a friend

Originally posted by YT

On reflection, some pension schemes may allow access before age 55, where a 'protected pension age' existed as at 6 April 2006. The administrators of the scheme will be the ones to confirm whether this is so in your case. You have however said "I've been told" that 55 is the earliest. Who told you this?

What type of pension scheme were you in? Salary-related or money purchase/defined contribution?

Also, who has told you that you can't transfer to a scheme in the USA?

The company that runs my pension told me 55.
Type of pension ? wish i knew, it does not mention much on the website where i can view the numbers, actually all it does is put out 3 numbers.

As to transferring to the USA, i looked into it 8 or so years back and found that the US blocks it. I thought it strange at the time, but apparently its a money laundering thing. You would think money coming from the UK would be considered legit.

 

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View YT's Profile YT Flag Oxford 17 May 19 9.30am Send a Private Message to YT Add YT as a friend

If your pension company has confirmed that 55 is the earliest age, then that is that, I'm afraid. Anyone who suggests to you that they can help you 'unlock' your pension before 55 is - basically - a scammer.

Also I've done some quick checking, and it DOES seem that a transfer from a UK pension scheme to a US arrangement is not permitted. This is more to do with tax regime incompatibility than money laundering. If you would be prepared to PM me with a bit more detail about who your pension is with...what type of statements you've been sent or you've seen online etc, I'd be happy to try and give you some pointers. I worked in the pensions industry for 40 years until just over a month ago, so I know a little bit about it.

Edited by YT (17 May 2019 9.31am)

 


Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes)

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View DanH's Profile DanH Flag SW2 17 May 19 9.34am Send a Private Message to DanH Add DanH as a friend

Depends on the scheme but it's usually 55. Some will allow you to withdraw before but usually with quite a heavy financial cost which negates most the growth in it.

 


Tw@tter:

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View chris123's Profile chris123 Flag hove actually 17 May 19 9.37am Send a Private Message to chris123 Add chris123 as a friend

Originally posted by YT

If your pension company has confirmed that 55 is the earliest age, then that is that, I'm afraid. Anyone who suggests to you that they can help you 'unlock' your pension before 55 is - basically - a scammer.

Also I've done some quick checking, and it DOES seem that a transfer from a UK pension scheme to a US arrangement is not permitted. This is more to do with tax regime incompatibility than money laundering. If you would be prepared to PM me with a bit more detail about who your pension is with...what type of statements you've been sent or you've seen online etc, I'd be happy to try and give you some pointers. I worked in the pensions industry for 40 years until just over a month ago, so I know a little bit about it.

Edited by YT (17 May 2019 9.31am)

Some of those old final salary schemes were excellent.

 

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View YT's Profile YT Flag Oxford 17 May 19 6.57pm Send a Private Message to YT Add YT as a friend

Originally posted by chris123

Some of those old final salary schemes were excellent.

Not wrong, but ultimately destroyed by endless governmental interference. This isn't a political point, as every government since 1978 (when I started out in pensions) has played its part in the decline of the final salary scheme.

Edited by YT (17 May 2019 6.57pm)

 


Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes)

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View cryrst's Profile cryrst Flag Chatham 17 May 19 8.29pm Send a Private Message to cryrst Add cryrst as a friend

Originally posted by YT

If your pension company has confirmed that 55 is the earliest age, then that is that, I'm afraid. Anyone who suggests to you that they can help you 'unlock' your pension before 55 is - basically - a scammer.

Also I've done some quick checking, and it DOES seem that a transfer from a UK pension scheme to a US arrangement is not permitted. This is more to do with tax regime incompatibility than money laundering. If you would be prepared to PM me with a bit more detail about who your pension is with...what type of statements you've been sent or you've seen online etc, I'd be happy to try and give you some pointers. I worked in the pensions industry for 40 years until just over a month ago, so I know a little bit about it.

Edited by YT (17 May 2019 9.31am)

You can take 25% tax free at 55.
Also in rare cases with approval of the regulators and/or tax man if you contract a proven terminal illness like cancer they may let you have it all tax free.
This may be really rare but is out there to be requested.
Happy chappy aint i.

 

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