Frozen Tesco DB Pension

[YeeWo]

Code: Select all

                               | Tax Free Cash Sum | Pension Per Year
Pension                        |                   |         £422.76
Max Lump Sum & Reduced Pension |        £1,896.00  |         £264.44
                               |                   |                 
Whole Scheme Transfer Value    |       £13,818.26  |                 


- A mate of mine, 55 yo, worked for a few years in Tesco and has received a letter outlining the above. He is still working Full Time (40% Taxpayer) and is a member of another DB Scheme with an additional AVC option if he requires. The Annual Pensions clearly aren't useful amounts of money, though the £13k Transfer Value looks appealing. He can't transfer the £13k into his current Company Scheme, a few thoughts in my head: -
- Could he ask Tesco for the Total Transfer Value Today? i.e. £1.8k Tax Free and the balance of £12k-ish as a Taxable Payment?
- If needs be would opening a SIPP help, as he would have something for Tesco to Transfer the money to?
Any assistance or advice gratefully received,
Many thanks!

[Kantwebefriends]

He could open a SIPP and transfer in. Because the CETV is less than £30k he needn't hire an IFA.

He might consider Hargreaves Lansdown or AJBellyouinvest as destinations.

[Raptor]

I transferred my Tesco DB pension to HL, but it was less than £4K. No need for any IFA just needed to say I was transferring it without any advice from HL.

Raptor.

[Chrysalis]

He should transfer to another pension rather than cash out. He’ll need to open aSIPP or other personal pension first and then complete a transfer form.
If he cashes out not only will he pay 40% tax on 75% of the transfer value, but he’ll also be restricted in his future contributions to money purchase pensions to £4K per annum.

[Chrysalis]

Advice is required if the transfer value is more than £30,000.

[pochisoldi]

- If needs be would opening a SIPP help, as he would have something for Tesco to Transfer the money to?

Does he have any other existing stakeholder style pension pots he can transfer it into?