Im_and_Er

I think with my previous posts and the subsequent useful information from chc4me I have set out my argument and there is little more I can add to it.

kerrygreen seems utterly convinced that he and his provider have done nothing wrong and I hope for his sake that it doesn't come back to bite him on the backside but frankly, just saying "no problems and a nice fat cheque at the end of it" and believing that to be a conclusive end to the matter is startlingly naive and the revelation that the liquidation has come at a cost of 8% of the fund amply reveals the motives for his provider telling him what he wanted to hear.

The question of tax on the proceeds in Ireland has not been answered however being a member of the EU Irish banks are subject to the same rules on money laundering as everyone else so a sum of €80,000 will definitely be flagged and questions asked in addition to which, according to my admittedly casual perusal of Irish tax rules, it will be subject to declaration under self assessment and I see nothing obvious in the document below to suggest that it will be regarded as anything other than taxable.

http://www.revenue.ie/en/tax/it/fore...ome-assets.pdf

Mitzyboy

I stopped myself commenting on that! It doesn't take too much to work out that if the fat cheque was £100k, then £8k has gone into someones pocket. I'm not trying to be overly negative Kerry, I just still am at a loss as to how this can be a good move. I baulk at my fund managers fees, and those are minor compared to that, but at least they are still working to increase my capital on a day to day basis. You of course are asking people where you can put your cash to generate income I truly hope you dont fall foul of the tax issue as well

kerrygreen

I can only draw on my previous experience.

7 years ago my wife took her pensions early (age 50) with the usual 25% lump sum which were deposited into our Irish bank account. I also had done some consulting work for a previous client of mine in the UK for which I was paid £17k.

None of this money was questioned when it entered our bank accounts and we paid no tax on any of it. If the Irish authorities do ask me about it I will, of course, give them the facts.

My main reason for commuting my frozen UK pensions into a 100% cash qrops were entirely due to the fact, in my opinion, the money would be better off with me now, than waiting another 8 years for a paltry annuity.

As regards HMRC, time will tell, but with the amount of time I spent trawling the net in search of any info I could get on the pros and cons (are there any?) of qrops, I took the position that I could find NO posts, threads, articles or owt else of anyone ever fouling foul of HMRC after the 5-year rule.

The very fact that opinions, for that is all they are, both arguing the 100% encashment is OK and other doomsayers saying the wrath of HMRC will be visited upon me, led me to beleive that there is absolutely NO problem with taking the 100% route.

Mitzyboy

Heh heh .... I'm trying not to be a doomsayer, I'm trying to get my head around it.

For instance, the paltry annuity (which you don't have to take, I checked with my IFA) would at least have had the benefit of £8000 that you now don't have. You didnt take the 100% route therefore as you lost 8% immediately.

The 25% lump sum pension you mention, whilst being a nice wedge and tax free in the UK, is actually taxable if you live outside the UK in many countries. I dont know about Ireland, but certainly it is in Spain, France etc.

Anyway, as you say it's all about opinions and experiences, and in the financial world everyone has their own!

kerrygreen

I think most people, forgetting for the moment whether qrops 100% is OK or not, would prefer to have a decent lump sum now and enjoy it, rather than have a small annuity later, when the other thing to consider is, you may not be in the best of health to enjoy it.

Of course, people's individual financial positions differ, and some may NEED the money now, come what may.

Im_and_Er

You're quite right that everyone's position is different and faced with say a property repossession, bankruptcy, or other financial calamity, cashing in ones assets may be a sensible expedient however 'prefer' is hardly a solid foundation on which to pin ones financial future and if offered how many I wonder would have either the willpower or the nous to turn down a fat cheque and just say 'to hell with tomorrow' ?

With regard to my bold from your post, do I take this to mean that you are unaware of impaired health annuities as if you are it brings into question the depth and breadth of your research and if that was flawed decisions consequently made may similarly be compromised ?

Im_and_Er

I've avoided comment on that aspect but I agree, and it's hard to see the advantage of the tactic other then being able to say "I've got €xxx in the bank".

We should also not forget that the money for a QROPS will itself, in the main, have come from existing UK pension funds and it's rare to find an provider who will let this money go without some sort of fine, or MVA (market value adjustment) to give it it's more palatable name.

The final net proceeds of the scheme then, relative to initial gross transfer values, make for a potentially very costly exercise overall.

kerrygreen

Not at all.

My personal opinion is that I would rather have a sum of money now which I can enjoy as I see fit while I am still in rude health.

Who knows what's round the corner, health-wise. and no amount of money or annuity is worth much if you are no longer able to enjoy it.

As you can tell, my philosophy is definitely 'live for today' rather than the 'rainy day' scenario.

millenium

Hi all, i would also be interested in getting more information about releasing your pension, have also tried to email you Chelsea.2011 and it bounced back

johnwarner75

Excellent, I didn’t realise it was so easy.
I suppose you have earn it, so you’re entitled to it, full stop. Shouldn’t matter where in the universe you are..

Im_and_Er

A neive opinion if you'll excuse the bluntness, have you read the thread, it sounds like you may have not.

Domino

if it looks easy it isnt
if it seems too good to be true then it is

and remember retirement is a long long time when you cant (rather than wont) work and you have no money to pay bills or buy food.

at this time HMRC and DWP haven't been tested but it is unlikely anyone will be allowed 2 bits of the cherry


caveat emptor

millenium

Hi all, I have now done lots of homework on this topic and have spoken to people that have moved their pensions no problem so iam more than happy to do mine

kerrygreen

Good luck with it. All I can add to the above is that I am completely happy I have done the right thing (for me) and it has certainly made a difference.

With all the economic uncertainty around at least I am in control of my finances and am not relying on the vagaries of the financial markets with pension funds being plundered.

Who can put their hand on their heart and say they are 100% certain that their hard-earned pension fund will actually still be there when they need it.

Don't trust anyone, don't believe anyone. Politicians, bankers and companies will screw the people without a second thought as has been proven.

Domino

call me an old cynic - cos I am, based on over 60yrs of experience of being done over by all and sundry
but just remember who it is that is advising you
yes you are calling the shots, but who is pointing the rifle and what direction

good luck