Sorry, You Can't Avoid Early Pension Penalty; PERSONAL FINANCE

The Mail on Sunday (London, England), May 25, 2003 | Go to article overview

Sorry, You Can't Avoid Early Pension Penalty; PERSONAL FINANCE


Mother's money J. W. writes: I am a member of my firm's money purchase pension scheme. My pension is invested in Scottish Mutual's with-profits fund and if I retire early I incur a market value adjuster (MVA) penalty. But I have been told that if I move my money into Scottish Mutual's cash fund six months before retiring, I will avoid this. Is this correct?

P. C. replies: No. Liability for an MVA penalty will depend on how long you have been in the with-profits fund.

A regular premium Scottish Mutual policy must have been running for 14 years for no MVA to apply.

The level of MVA varies depending on how long the investment has been running. If the MVA applies, you will not be able to avoid this by switching to the cash fund before retiring early.

Scottish Mutual does not apply an MVA if you keep your fund until your normal retirement date.

M. P. writes: I read that millions of pounds are left unclaimed by pensioners. How can my mother find out if she is receiving all the benefits to which she is entitled?

P. C. replies: She should contact her nearest social security office.

For the closest office, look for the Jobcentre Plus, social security or Jobcentre display adverts in the business section of the phone book.

More information can also be obtained from the Department for Work and Pensions website at www.dwp.gov.uk S. H. writes: My father is 86 and worries that when he dies I will have to sell his share portfolio when the stock market might be low. To avoid this, he is thinking of transferring the shares into our joint names.

Is this possible and would it help?

M. D. replies: It is possible to transfer stock into joint names through a 'nominal transfer'. These can be obtained from the registrar for each stock - the registrar's details will be on the share certificate.

If stock is held in joint names and one of the shareholders dies, the stock is automatically transferred to the surviving shareholder on production of a copy of probate. However, stock held in joint names is not eligible for any Isa or Pep account.

ASK THE EXPERTS

TODAY'S experts are PATRICK CONNOLLY at Chartwell Investment Management in Bath; VIVIENNE STARKEY of adviser Equal Partners in London; MARTIN DOBSON of Edited by Abigail Montrose NatWest Stockbrokers; and RAY BOULGER at the London office of mortgage and financial adviser Charcol. If you have a personal finance query, write to: Ask the Experts, Room 356, 2 Derry Street, London W8 5TS.

Send only copies of original documents, which cannot be returned. Sorry, no personal replies.

Please release me- I. C. writes: My elderly mother transferred her house into my name but she still lives there. I would like to release some equity on this property so that I can buy a holiday home. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Sorry, You Can't Avoid Early Pension Penalty; PERSONAL FINANCE
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.