Cashing in pensions

[bahrain rover]

Hi All,

Is anyone clued up on pensions, in particular the ones where we were encouraged to opt out maybe 25/30 years ago. As I now live overseas halfway around the world in the Philippines with no intention to return, can I cash this in and if so how? All advise appreciated.

[idler]

Hi, I took redundancy in 2003 and claimed my works pension at 53. I started my new job and joined their scheme. They changed providers twice in this period so I ended up with three pots. These weren't going to give me a large monthly pension so I claimed all three over two years as lump sums. Two were about £1,500 and the third had about £19,000 in.
I think the first one was classed as a small pot so no problems. I think that for the second small one there was no problem either. The last larger one I had to have confirmation from a financial advisor that I understood the implications of cashing it in. I did have to pay tax on them and the large one was rated as emergency tax and I got a refund at the end of the tax year.
I'm sure that one or two on here like Jenny can give you better advice though.

[bahrain rover]

Thank Idler. Yeah Jenny sprung to mind on this one.

[hoolahoop]

Hiya Bahrain,  I had 3 pots worth between 45-60k each 2 were lying dormant and the 3rd still has money going into it each month . My partner is younger than me and also has a larger lump sum and a full pension that she will receive when she is 67/8 I think.

Because I have health problems that I needed extra money for , we cashed one of my smaller ones in and like Idler paid emergency tax on which although I managed to get a refund on it ; I ended up paying a high rate of tax on it due to my tax thresholds - big mistake ! This also impacted adversely on my daughter's student finance maintenance grant.

* beware of being an older parent with a son/ daughter who is studying- there can be unanticipated effects on their Student Finance. *

Now I'm not sure of the sums involved in your pension pot but I would advise keeping any withdrawals in any one tax year below the tax free figure of £10k . If you have a pot in excess of c. £20k then I would advise putting it in a drawdown account allowing you to get at your money when it best suits you. My middle account currently sits in a slightly different format whereby I can withdraw cash when I need it ( have daughter at Copenhagen uni this year !! ) and/ or move any cash I have into different investments which is interesting.

As  you live in the Philippines you may prefer to get your hands on all the money immediately . I take it this is SERPS money perhaps bolstered by a private pension ? Who currently has charge of the money is it a UK based private Assurance / Pension provider - other question is do you make regular visits back here when perhaps these monies could fund trips , however I might be tempted if it's not a huge amount to take the tax hit on it now as the £ is tottering. It could be that the Peso is weak and you might want to time it for when that improves. Certainly I would wait and see if you can make gains on any wild currency fluctuations due to Brexit or even the opposite some sort of trade deal with the UK that will strengthen the Peso ?

Hope this helps , always PM me if you prefer.

[bahrain rover]

Hoola,

Great advise thank you. Yes thinking about it I will wait to see what happens next year with Brexit. On the tax front do I still get hit on that side as I don't have a UK tax code anymore? my class is NT, I am guessing emergency tax will be taken and I claim back?

[hoolahoop]

Hoola,

Great advise thank you. Yes thinking about it I will wait to see what happens next year with Brexit. On the tax front do I still get hit on that side as I don't have a UK tax code anymore? my class is NT, I am guessing emergency tax will be taken and I claim back?

Yes if you take it all at once I'm pretty sure you would have to claim it back Jenny or Big fat yorkshire pudding would be the best to advise you on that though.
Good luck with HMRC on this one   - I think they are rather busy on other matters currently . Looking at the Phillipine Peso ( or is it Piso ) it seems at an historical low. Is there a reason why it might be performing poorly against the £ currently ?

[bahrain rover]

Hoola,

I don't really check against the pound anymore as I am paid in USD. But usually you can look around 73php to the 1gbp. Just checked XE and it stands at 68 so that makes it slightly stronger. The day after the Brexit vote the pound was only buying 53php. So lets convert that buying power to understandable currency. 1.60gbp will get you a 1 litero of Red horse 8% beer

[BillyStubbsTears]

Bahrain

That’s not because the pound is strong. It’s because the Php has weakened against pretty much every other major currency in the world over the past 2-5 years.

[hoolahoop]

Bahrain

That’s not because the pound is strong. It’s because the Php has weakened against pretty much every other major currency in the world over the past 2-5 years.

Hmm that's what I thought too when looking at the historical exchange rate . So my original observation still stands - waiting and watching out for underlying trends in the $/php exchange rate is particularly important.

[bahrain rover]

Guys I am going to be really thick here, am I missing something? If I was say getting 73 Php for 1 pound and now 1 pound only buys me 68 Php then surly the Peso has strengthened?? Am I aeeing this wrong?

[hoolahoop]

No you aren't being thick but if you had been paid this lump sum for  £ 20,000 for the sake of argument after tax then :-

20,000 x 73 = 1,460,000  Was

20,000 x 68 = 1,360,000  Now

Therèfore  - 100,000 PHP

Making that a lot less Red Horse beer,  to re-use your analogy ( assuming 1 litre costs c.120 PHP).
Imagine if the exchange rate climbed to £ = 78 PHP

[BillyStubbsTears]

Bahrain

Yes, you’re right. It’s strengthened against the pound. My apologies if I confused things.

Point is, the PHP has weakened against pretty much every other major currency.

The fact that it’s strengthened against the pound is an indication of just how much weaker than other major currencies the pound is. That’s because markets are expecting the UK economy to perform significantly below par into the long term future. Because of Brexit.

If you’re paid in a foreign currency, that works out great for you. My own company has two big contracts where we’re paid in $ and € and we’re getting significantly more £ than we expected to. But if you’re paid in £ then have to convert that into a foreign currency, you’re a lot poorer than you would have been if the £ was strong.

And over and above all else, a weak currency for a long period of time means a country that is poorer by international standards. The Brexit vote immediately made us 15% poorer than we were the day before. Some patriotism!

[bahrain rover]

BST, Thanks thats what I thought. Yes when Brexit came some of the team here were paid in pounds and overnight took a approx 15/20% paycut. I am paid in USD so when I next may return to UK in a years time I may be in for a nice time with exchange rate.
Hoola, spot on a liter of 8% mind numbing Red Horse does cost exactly that If you buy from me.

[hoolahoop]

BST, Thanks thats what I thought. Yes when Brexit came some of the team here were paid in pounds and overnight took a approx 15/20% paycut. I am paid in USD so when I next may return to UK in a years time I may be in for a nice time with exchange rate.
Hoola, spot on a liter of 8% mind numbing Red Horse does cost exactly that If you buy from me.

My god imagine what our lot would be like drinking it here and at that price. Unfortunately , I would think that b3cause you would most likely be paid in ££££s then timing would prove crucial . Now of course if you kept a British bank a/c then you could choose your own timing to transfer your deferred pension monies to the Philippines. 

Sounds like you love it over there and take it you have a shop and perhaps a filipino wife ?
Paalam.

[bahrain rover]

Hoola,

Magandang umaga ng maraming salamat Kuya,

I have a bar/ restaurant in Mindanao. Yes my wife is Filipeana, we are both are still in Bahrain/Saudi working until we plan to return to Fils next year (my 50th) and early retirement, hence the bar business being up and running and making money now. The 120Php is off sales price not bar price 

[hoolahoop]

Hoola,

Magandang umaga ng maraming salamat Kuya,

I have a bar/ restaurant in Mindanao. Yes my wife is Filipeana, we are both are still in Bahrain/Saudi working until we plan to return to Fils next year (my 50th) and early retirement, hence the bar business being up and running and making money now. The 120Php is off sales price not bar price 

Good morning to you too and thanks for the interesting conversation . My apologies of course " filipeana " - how have you got on with the language so far ? Oh good luck with the business btw

[bahrain rover]

Hoola, The language is tricky to say the least. I am usually fast at picking up language, but Tagalog I have found difficult. The only saving grace is the many years of Spanish occupation brought a lot of words in to the language you can recognize to an extent. Also a form of Tagalog/ English ( Taglish) is widely used especially on TV and films. Speaking the language isn't so bad once you realize you say exactly as it reads. But there is a spanner in the works once Tagalog is mastered!! there are over 270 different regional sub languages. My Wife's is Maguindanon, and with it being the ARMM the Muslim region of Fils there is Arabic mixed in to it. Have you been for a visit or holiday? Its a haul I know from the UK, its 9hrs from here in the Middle East. Its a fantastic place and you would not wish to meet nicer people ever ( Outside Of Manila of cause) I recommended to  friends to go visit. They went in June for 10 days and as of now still there with no sign of returning.  I love the place I could go on and on about it. There is a guy vlogs on Facebook under the title Becoming Filipino, worth a look at his adventures.

[hoolahoop]

Hoola, The language is tricky to say the least. I am usually fast at picking up language, but Tagalog I have found difficult. The only saving grace is the many years of Spanish occupation brought a lot of words in to the language you can recognize to an extent. Also a form of Tagalog/ English ( Taglish) is widely used especially on TV and films. Speaking the language isn't so bad once you realize you say exactly as it reads. But there is a spanner in the works once Tagalog is mastered!! there are over 270 different regional sub languages. My Wife's is Maguindanon, and with it being the ARMM the Muslim region of Fils there is Arabic mixed in to it. Have you been for a visit or holiday? Its a haul I know from the UK, its 9hrs from here in the Middle East. Its a fantastic place and you would not wish to meet nicer people ever ( Outside Of Manila of cause) I recommended to  friends to go visit. They went in June for 10 days and as of now still there with no sign of returning.  I love the place I could go on and on about it. There is a guy vlogs on Facebook under the title Becoming Filipino, worth a look at his adventures.

Hmm like you I love my languages but these sound like difficult ones especially your wife's mother tongue . Pleased to hear that you are having a go at it and you're definitely right when you say that it is a bonus when a language is pronounced as it reads  ( Tagalog that is ) .
I'm currently learning 3 languages and just refreshing another couple but then I have time on my hands . I am particularly concentrating on Danish and at the same time stretching myself with Dutch and Russian.
Danish is a devil of a language to get to grips with - fine as far as the general shape of it goes but really awkward to pronounce and of course pick up orally . My daughter goes back to Denmark to study for a year and I thought it would help her if I made it sort of competitive before she leaves next week - she has risen to the challenge . However boredom set in and I challenged myself after visiting Amsterdam recently , realised how rusty I had become and so disappointed at how much I had forgotten that I cracked on with it too along with Russian adding French and Spanish along the way. I'm convinced like Suduku and the like that it will keep dementia away.
Anyway,  sorry I digressed , I would love to go to such a beautiful country someday and was fortunate to spend time in Malaysia , Singapore , Hong Kong and India when i was oung as my dad was in the Armed Forces ; I was 12 before coming back to the UK.  I know the people are great in the Philippines as I was nursed by them in intensive care and on the wards for 10 weeks - they are lovely , patient and generous people or certainly the many I met were " lifesavers " as well. You are truly a lucky man to live In Mindanao, how did you even meet your wife and what made you make such a life-changing choice ?

This Taglish language sounds really interesting though - maybe a challenge for later Must check out this fb page tomorrow - 

[bahrain rover]

Hoola, I recall your daughter going to Denmark to study. Good one on the languages, i didn't appreciate learning at school and wish now I had. But I have really made up for it now. We were got to know each other via a circle of mutual friends. With me living in Bahrain and working the short drive over the causeway to Al Khobar in Saudi. My wife worked at Gulf Air pilot training facility in BH, rest is history. Mindanao is stunning but unfortunately gets extremely bad press even in Fils due to the armed clashes between rival factions. Mindanao is still classified as a no go zone by the UK government, and I am very much there alone if anything went wrong. This is hyped a lot by the media as per usual. But travelers are now starting to venture there and their in for a real treat. I encourage anyone to give the Philippines a go, instead of the obvious places like Thailand and Bali. Take a look at Siargao in north Mindanao stunning place.

[hoolahoop]

Yes I mentioned it when talking about Brexit. Well the time has come and she flies out with us on Monday complete with a heavy full wardrobe for a year.
Unfortunately I had a an accident on a rowing machine this week flying into the next machine so I am nursing some bruised ribs and pride- the timing couldn't be worse !

I would have loved to explore your region more , perhaps popping in for a beer or two but unfortunately the plane journey would be far too long for me now - a case of missed oppurtunity. Illness has made me reappraise my bucket list somewhat as I was hoping to spend a month or two later in life travelling around the Far East. It seems that I will have to content myself with journeys less than 5 hours flying time from now on. Will address the rest of your post later if that's ok mate ?

[RedJ]

Missing a trick here hoola! Just make your way over there incrementally

[bahrain rover]

Take It Easy Hoola. Yeah Red J what a trip UK to the Far East bit by bit. The car I have out here I love it and will hate to part with it so much I have looked in to ways to drive it from Bahrain to Phils. Epic trip I would love to do, but the last part is financially impractical as the shipping and import duty will be way more than the car is worth. The route would have been a hot one and I do not mean temperature. Saudi/Kuwait/Iran/Pakistan/India/Bangladesh/Myanmar/Laos or Thailand/Cambodia and finally Vietnam and Ho Chi Minh City. Still contemplating it and donating the car to a relief agency.

[hoolahoop]

Missing a trick here hoola! Just make your way over there incrementally

Yeah of course RJ whatever happened to my ability to think laterally

[RedJ]

Missing a trick here hoola! Just make your way over there incrementally

Yeah of course RJ whatever happened to my ability to think laterally

Must be your age.

[BillyStubbsTears]

Take It Easy Hoola. Yeah Red J what a trip UK to the Far East bit by bit. The car I have out here I love it and will hate to part with it so much I have looked in to ways to drive it from Bahrain to Phils. Epic trip I would love to do, but the last part is financially impractical as the shipping and import duty will be way more than the car is worth. The route would have been a hot one and I do not mean temperature. Saudi/Kuwait/Iran/Pakistan/India/Bangladesh/Myanmar/Laos or Thailand/Cambodia and finally Vietnam and Ho Chi Minh City. Still contemplating it and donating the car to a relief agency.

Braver man than me BR!

I’ve just driven from Italy to home via Switzerland and France and I’m knackered!

[hoolahoop]

Take It Easy Hoola. Yeah Red J what a trip UK to the Far East bit by bit. The car I have out here I love it and will hate to part with it so much I have looked in to ways to drive it from Bahrain to Phils. Epic trip I would love to do, but the last part is financially impractical as the shipping and import duty will be way more than the car is worth. The route would have been a hot one and I do not mean temperature. Saudi/Kuwait/Iran/Pakistan/India/Bangladesh/Myanmar/Laos or Thailand/Cambodia and finally Vietnam and Ho Chi Minh City. Still contemplating it and donating the car to a relief agency.

Braver man than me BR!

I’ve just driven from Italy to home via Switzerland and France and I’m knackered!

I wouldn't fancy either journey personally - less bandits ready to have your trousers down.
Joking apart lads but have either of you tried crossing Barnsley on one of those horriboggle Barnsley nights in winter .

[RedJ]

You say that as if there's ever a pleasant time to be anywhere near Barnsley...

[hoolahoop]

Hmm true there isn't really . I'm in Copenhagen at the moment and shattered - much better than Barnsleeee that nose .
Must admit I'm spending money like watter too. Nigh on 4000DK down and I only got here Monday night - still only spends the once . 😨

[bahrain rover]

That cracked me up. Id take my chances in Kandahar any day over Barnsley.

[RedRover45]

Hmm true there isn't really . I'm in Copenhagen at the moment and shattered - much better than Barnsleeee that nose .
Must admit I'm spending money like watter too. Nigh on 4000DK down and I only got here Monday night - still only spends the once . 😨

Hoola, I was in Copenhagen 2 weeks ago and really enjoyed it. Highly recommend Cafe Mambo for food near the Tivoli Gardens.