The Lemon Fool

Dear "ex fools",

Many years ago, I started an "Executive Pension Plan" because I did not know better!
Then it was virtually impossible to get the money out or in a stakeholder pension due to outrageous charges.

I am now 56 years old.
Do you think it is possible to get all or part of the money out without paying fees/taxes?

The amount is quite modest and I am not using my full ISA allowance.
If I can get the money without tax (...), I would like to invest it in ISAs instead.

Does this sound like a daft idea?


Many thanks

Eric

I STRONGLY recommend waiting until next financial year.

I believe that the FCA is imposing a cap on exit fees from the 31'st of March.
https://www.corporate-adviser.com/fca-publishes-pension-exit-charge-rules/

As for Tax, well that is another matter.
Taking it out to put into an ISA is unlikely to be the most tax efficient thing to do. Indeed there are arguments for drawing funds from ISA's and reducing the funds drawn from pensions to minimise tax given that until you are 75 pensions can be passed on in a tax efficient manner.

EricLeBouffon wrote:Do you think it is possible to get all or part of the money out without paying fees/taxes?

It's impossible for anyone here to say. You have to, quite simply, ask your "Executive Pension Plan". They should be able to give you a general set of rules & information (that applies to everyone) and -- on formal request -- a specific transfer value.

The transfer value will, most likely, be guaranteed for three months, but do ask about the rules for asking for transfer values before asking for it (!) as some plans place restrictions and/or costs on how frequently you can ask for one (e.g. mine gives one per year for free but if you want another within 12 months they charge £300.)