www.iva.co.uk

Hi all

It has been a while since we last posted

Pension rule changes - CAB link below

http://www.adviceguide.org.uk/england/n ... nsions.htm

A point of worthy discussion and potentially of importance as far as debt advice and insolvency solutions are concerned we would suggest.

Access to lump sums and increase in incomes for those who are in a position to take pensions early

We are already getting enquiries

What are the implications or opportunities even for anyone considering taking advantage of the pension rule changes?

Serious area and subject maybe?

We thought we would raise and put this issue to the forum members for discussion and input

Paul

NED-CAB

This was touched upon recently in this forum. Someone who reached 65 and hence had access to his pension suggested he may want to defer taking the pension until after the IVA was completed. (There was nothing specific in his personal proposal about what should happen at this time).

I seem to recall the professionals on here said this was a releasable asset and therefore should be realised for the benefit of the IVA. I would assume they would take the same stance under the new legislation for people turning 55.

However, as there is likely nothing in current proposals, I imagine the same inconstant and dis-organised approach across IPs as with PPI. Heaven forbid, IVAs being keep open until for people approaching 55 so the pensions can be drained.

Expect something being written into future 2015 protocol !

The cynic in me has to agree with mole.

IVA customers in their mid 50's onwards should perhaps start to make discreet enquiries regarding how to 'protect' their pensions, because you can bet you were not told that your pension would be at risk when the IVA was sold to you.

I'm sure it won't be long before we start to see enquiries on this and other forums, along the lines of 'My IVA firm wants to take my pension'.

Hopefully I am wrong, but would be interesting to read what the experts here have to say on the subject.

Hi

Interesting subject

Creditors may feel that if the whole pension pot can be taken then why not use it to repay debt ? Not a good idea as retirement will be a struggle but I can't see creditors letting the availability of a lump sum go by

Regards

My concern is we are talking recovery of unsecured debt, to that end the IVA as was a valuable debt solution. It does appear that it's fast becoming an all grabbing solution PPI, sale of asset or threat or BR, secured loans and possible pension pots, then what use will an IVA be. To my mind the IP's role then becomes the chef at the carvery and we're the meat!

Hi

Thank you all for the replies

A news article in the Telegraph that gives figures on the potential scale of all this:

http://www.telegraph.co.uk/finance/pers ... sions.html

It is hard to see how the pension rule changes will not become a serious debate & issue including where debt advice / insolvency options & solutions are concerned

People need to be made very aware

Paul

NED-CAB

Pension pots can be quite sizable even on a return of a modest income. As you can see from the article the interesting bit is the 25% tax free lump.

There must be a business there just waiting to be had, where it's used to dissolve the debt(I had in mind 65% or better return to the creditors) for a one off fixed fee. Job done..creditors get a quick sizable return, on the condition that insolvency is avoided. Any takers?

Hi

Its been a while

I thought this was worth putting up

https://www.gov.uk/government/news/undr ... t-advisors

Paul

NED-CAB

The main problem may well turn out to be that very few debt advisors will be able to help in this area, as this is regulated advice.

Regards.

We will be introducing changes to all our proposals and excluding pensions. Provided creditors are happy this should make things a bit simpler.

Hi

Cheers for the replies

Sections 3 & 4 in the link look interesting

It got us thinking a touch yesterday

I was wondering what both your thoughts were on these

Paul

Michael, when my proposal was drawn up pension proceeds were specifically excluded and no mention was made by the the creditors.