Pension lump sum

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elizabeth340

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Post by elizabeth340 » Wed Mar 27, 2019 9:20 pm
I started an IVA a year ago. I'm 65 in August and due to ill health I think I will eventually have to retire before my retirement date of May 2020.
I would be entitled to a tax free lump sum and a monthly pension ( I don't have any figures at the moment) on retirement.

I believe from what I've heard/read that I would have to give all of my lump sum to my IVA to go towards payment of the IVA.

This was going to provide me with an income along with my Company Pension as I'm not entitled to a state pension until next year as mentioned already.

Could you confirm if this is correct as I'm worried I won't be able to afford to take early retirement if I have to give all my lump sum away.

Foggy

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Post by Foggy » Wed Mar 27, 2019 9:29 pm
If your pensions and proceeds have not been specifically excluded in your own terms then, yes, any lump sum drawn down will be payable to your creditors, if drawn down while you are still in the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

elizabeth340

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Post by elizabeth340 » Wed Mar 27, 2019 9:51 pm
Hi Foggy,
Thanks for your reply.
No one mentioned my pension when I started my IVA, I would have thought as I'm very near retirement age, someone would have mentioned it as they have more experience of the process than myself.

Foggy

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Post by Foggy » Thu Mar 28, 2019 7:43 am
Wed Mar 27, 2019 9:51 pmelizabeth340 wrote:
Hi Foggy,
Thanks for your reply.
No one mentioned my pension when I started my IVA, I would have thought as I'm very near retirement age, someone would have mentioned it as they have more experience of the process than myself.
One would like to think so --- but the level of attention you receive varies greatly from provider to provider. lthough the "I" in "IVA" stands for individual, the factory firms tend to rely too much on standardisation and "one size fits all".
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Thu Mar 28, 2019 9:04 am
Check your paperwork to see what it says, I took early retirement with voluntary redundancy and I was allowed to keep my lump sum.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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elizabeth340

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Post by elizabeth340 » Thu Mar 28, 2019 9:26 am
Thanks for your reply Kallis3
I will check my paper work to see if this is mentioned.

Lisa Thomas

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Post by Lisa Thomas » Thu Mar 28, 2019 9:57 am
Check your paperwork to see what terms were agreed to.

Perhaps you might delay taking the lump sum, or put forward a variation with creditors to use some of it to put forward and full and final offer to pay what they would have received in the normal course to completion, and close the IVA early.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Allywally

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Post by Allywally » Thu Mar 28, 2019 2:39 pm
I have had two lump sums from pensions during my IVA and was able to keep both as stated in the terms of my IVA. I hope yours is covered too.
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