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Is there an ulterior motive to the pension change ? If people with a pension pot reach 55 under the new rules, they will be able to access the money, without having to buy an annuity. This could have implications for people with debts or who are receiving any state benefits. If you have debts, it is possible that you could be made to access the pension pot by a court to pay off any debts. If you are on any state benefits, you will have to disclose the pension pot as savings, which could mean that benefit entitlement may be cancelled or reduced.

 

Keep an eye on the government when they put the legislation through to see if they add any protections to stop either of these issues affecting people.

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Is If you have debts, it is possible that you could be made to access the pension pot by a court to pay off any debts.

 

Is there a source for this information?

If you are on any state benefits, you will have to disclose the pension pot as savings, which could mean that benefit entitlement may be cancelled or reduced.

 

You would still get your regular state pension though, right? It will simply mean that you may not qualify for other benefits such as pension credit, for example. There is a similar situation in place now as I understand it. I've not had time to read too much on this yet. But I will.

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Is there a source for this information?

 

 

You would still get your regular state pension though, right? It will simply mean that you may not qualify for other benefits such as pension credit, for example. There is a similar situation in place now as I understand it. I've not had time to read too much on this yet. But I will.

 

The details of the changes are not known at the moment. We will have to wait for the legislation. In theory, because you don't have to buy an annuity, the pension pot of money will become accessible savings once someone reaches 55. Therefore unless protections are brought in, it will have implications for people with debts or are in receipt of benefits.

 

You will still get your state retirement pension when you reach the relevant age. The government will also have a pension level minimum, so if you have not paid enough years in, you will still get a minimum level of pension.

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Well there are absolutely no provisions that force people to use savings to pay debts at the moment, so why would it change? That said, it could potentially be an issue where people are under a formal insolvency option such as an Individual Voluntary Arrangement or Bankruptcy. Also, those with CCJs against people could go for a third party debt order I guess.

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Well there are absolutely no provisions that force people to use savings to pay debts at the moment, so why would it change? That said, it could potentially be an issue where people are under a formal insolvency option such as an Individual Voluntary Arrangement or Bankruptcy. Also, those with CCJs against people could go for a third party debt order I guess.

 

I raised this issue, as it is bound to come up. The government should look at this, to make sure that the funds cannot be accessed unless the person makes the choice for themself.

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Once you have bought an annuity, you don't have a pension pot anymore. You just have the income from an annuity. I'm not sure you would be able to convert that back into a lump sum.

 

I think things will improve from a debt perspective as presumably people will want to take lump sums to clear debts. But in a few decades time we will see a lot more pensioners becoming completely reliant on state benefits. People tend to badly underestimate their own life expectancy, underestimate inflation and overspend against lump sums ... a toxic combination.

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can someone tell me if i can now take all my personal pension at age 55 as a lump sum?

it is only a relativly small pension i forgot about for years, and the latest statement says the pot is around 3000 pounds.

i also assume 75% is still taxable?

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first 25% tax free, remainder at your highest payable rate-and yes you can upto 30000 currently

Edited by theoldrouge
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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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thanks,one other thing my pension provider seemed to say i could take my lump sum on my 55th birthday which is january next year, however i have read the full impact of the new rules comes into force in april next year

should i hold on till then as i might miss out on certain benefits?

sorry im confused.

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depends on the amounts involved really

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