Pension Cash Out

cencglob

A friend of mine put a one time payment of about 15K into a Standard Life “Synergy Personal Pension” about 10 years ago, nothing was added since, its value is about 12k now.
He is 45, the current projected pension value is a pittance, about €270 per year.
He has been part-time working and receiving unemployment benefit for the last few years.

With the pension company taking their €200 yearly fees, he feels like it would be best to cash out now if possible paying the 40% income tax which would have been owed at the time, and any other fees needed.

I have not found a thread here with the social welfare aspect considered, so throwing it out there.

Thanks

Henry Ford III

He can't do that. Under a PPP minimum normal retirement age is 60.

p.s. Don't get hung up on annuity projections. Tax free cash and ARF options are possible.

Jim2007

cencglob wrote: »

A friend of mine put a one time payment of about 15K into a Standard Life “Synergy Personal Pension” about 10 years ago, nothing was added since, its value is about 12k now.
He is 45, the current projected pension value is a pittance, about €270 per year.
He has been part-time working and receiving unemployment benefit for the last few years.

With the pension company taking their €200 yearly fees, he feels like it would be best to cash out now if possible paying the 40% income tax which would have been owed at the time, and any other fees needed.

I have not found a thread here with the social welfare aspect considered, so throwing it out there.

Thanks

Being down 20% this early in a pension fund that would be primarily invested in equities at this stage is nothing to get excited about. What was the exact date of the valuation...

NewCorkLad

Jim2007 wrote: »

Being down 20% this early in a pension fund that would be primarily invested in equities at this stage is nothing to get excited about. What was the exact date of the valuation...

I would assume he is invested in the cash fund. He needs to go back to whoever he invested this through to discuss changing how it is invested as he cannot access this for another 15 years.

Jim2007

NewCorkLad wrote: »

I would assume he is invested in the cash fund. He needs to go back to whoever he invested this through to discuss changing how it is invested as he cannot access this for another 15 years.

Very unlikely given his age.

NewCorkLad

Jim2007 wrote: »

Very unlikely given his age.

He shouldn't be but I wouldn't be surprised with some of what is going on out there.

Henry Ford III

Jim2007 wrote: »

Very unlikely given his age.

Are you Mystic Meg?

SLAC's funds have been doing ok, particularly over a 10 year period. Synergy PPP was a bit pricey, but not stupidly.

I'd go back to the advisor who sold this policy and ask them what's the issue.

p.s. After tax relief the policyholder is still ahead.

cencglob

There is about 12k in it now, the advisor is deceased, the plan was passed back to Standard life, it's described as plan where the investment can be self directed with a stock trader or even invested into a to-let residential property.

Thank for the replies.

Henry Ford III

cencglob wrote: »

There is about 12k in it now, the advisor is deceased, the plan was passed back to Standard life, it's described as plan where the investment can be self directed with a stock trader or even invested into a to-let residential property.

Thank for the replies.

Appoint a new advisor. There are plenty of options.

Jim2007

Henry Ford III wrote: »

Are you Mystic Meg?

No but as I said given his age, it would be very unlikely that he would have been sold a money market type product, it would be very difficult for an advisor to argue that it was best practice at a minimum.