Moving a crystallised pension to Cobens?
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Here's a Friday teaser for you!
I have a relative who has a perfectly okay Aviva pension. It is a "Pre-95 Personal Pension Plan (UK)". I have helped her tweak the investments a little (over many years), and it is doing well for her.
She is now keen to take her 25% TFLS (a range of valid reasons), and can do it directly from that pension.
However: ONCE she has crystallised that particular pension, she cannot in the future arrange a regular drawdown on the taxable 75% that is left invested - she can only contact them to make an individual request. That won't be helpful for her in the years ahead.
She has spoken to them about how to manage this better, and they have got a different SIPP option they discussed with her that would let her do regular withdrawals.
However - she cannot transfer a crystallised pension to it. I've no idea why!
She would have to move the whole lot now - up to maybe 6 weeks, so they told her - THEN take the TFLS.I am wondering which other providers might allow crystallised pensions to be transferred, BUT with the ability to chose to make a regular drawdown at some point in the future.
Could Cobens be the answer, I ask myself....
So....my question here, likely for Nik, is whether she might be able to take her 25% TFLS, then potentially move it to a Cobens pension for access later via regular payments?
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Hi Mike
Very simple and quick answer, yes we do take crystallised funds. They are transferred in on a "like for like" basis so will be treated as crystallised funds on receipt and you can then set up a regular income or take ad-hoc payments as required, they will just be taxed as income when drawn.