The Lemon Fool

My OH has a small pension from an employer long in the past - current value of the fund is approx £12000. As this will produce (yet another) tiny pension once it comes into payment, she would like to find the best way of getting the cash out (and not pay too much tax)!

The current fund manager will not permit partial transfers. Ideally she would like to transfer it to a manager which will permit partial transfers so she can split it into two sums of less than £10K and then take it out in two small pots.

So far we have looked at Vanguard. They seem to fit the bill for the above - with the limitation that any remaining fund left with them has to be at least £10K. This would mean transferring only ca. £2K to a new fund.

DAK if this will be an issue in finding a new manager for this small amount - and then taking it out shortly after the transfer?

Alternatively DAK of a manager who will accept the £12K in, and allow partial transfer of (say) £6000 to another manager?

All suggestions for the best way to achieve the above objective?

ReallyVeryFoolish wrote:I am led to believe that Hargreaves Lansdown will create a £10,000 pension pot from a larger pot if asked to, in order to facilitate a small pot withdrawal. So, if required you could draw down two small pots and have the £12,000 withdrawn whilst not having any effect on other pension pots. However, I don't know this from personal experience, you'd need to check it with HL to verify it is true.

RVF

It is true. They will create a £10,000 small pot from an existing SIPP / arrangement if you ask them. Useful if you are knocking on LTA as a small pot uses zero LTA so you are effectively increasing LTA by £30,000 using three small pots.