Pension Lump Sum

Hammy53

I am self employed and took out an Ark Life Pension in 1990, and it matures in 5 years time. To cut a long story short if I go the route that they're telling me I have to, which is to take a tax free lump sum, and buy an annuity with the rest, I'll end up with an annual income from this of around €200! It obviously makes more financial sense to me to get it all back as a lump sum ( I think it's worth, or will be about 60,000), but they tell me that I can't do this.
I've heard somewhere that it is possible to do this if your total contributions are less than a certain amount. I'm also doubting what they're telling me since they have consistently misinformed me over the years.
Anyone have experience of this? I'd appreciate any advice.
Colin Hamilton

coffee_cake

there's a revenue max of how much lump sum you can take which isn't up to them
surprised they don't give you an overall annuity option though

Liam D Ferguson

If the total value of ALL pension funds you have, including this one, is less than €20,000 after you've taken out your tax-free lump sum, then you can apply to take the lot as a lump sum under trivial pension rules.

But as your fund is around €60,000 I'm afraid this doesn't apply to you.

Have you other pension income from other pensions?

Hammy53

Thanks for that. I knew there was some sort of a limit, but unforunately I'm way past it. And I don't have any other pension income ( or won't...it's still 5 years away)
Is there any other way I can get this money as a lump sum? I reckon they've broken the contract as I've been consistently mis-informed ( to put it politely ) over the years, and they haven't provided me with the yearly info on the state of my fund etc etc.

Liam D Ferguson

If you've no other guaranteed lifetime income, then your only option over and above the annuity is to transfer the balance of your fund (after the tax-free lump sum) into an Approved Minimum Retirement Fund, essentially another pension fund. You'd have no access to it until you're 75 but at that point you could withdraw the whole fund as a lump sum - but it would be subject to Income Tax. I don't think this option sounds like what you're looking for.

Regarding your complaints, put them in writing to Ark Life. Let them go through their formal complaints process. If you're not happy with the outcome, you can take your complaints to the Financial Services Ombudsman. But to be honest, I would be surprised if the FSO ruled that a pension company should be allowed to change the access rules at retirement.

Hammy53

Liam, thanks a lot. I've been trying to find answers to those questions for a long time. Really appreciate it.