www.iva.co.uk

New Pension Rules April 2015
I will be half way through my IVA next April when the new Pension rules apply, therefore as I am over 55 I will be able to take all of my Pension as cash, 25% Tax free and the rest taxable, the Tax free element should cover the remainder of my IVA payments. Therefore my question is would an IP take this as Full and Final settlement, this would then at least finish my IVA early or would they want more money as I would now have access to more funds. If possible like most on this forum I want to have this behind me and start afresh, I realise that this would use up my Pension fund but I would still have money to re-invest in my home or start a new pension. I have not seen any questions on the forum like this so would appreciate any thoughts. Thanks

If you are over 55 it might be worth looking at making a F&F with your tax free lump now, we have just done this and had offer accepted after 24 months we have now in the process of completing.

I appreciate your worries about them wanting more, but you should couch the offer in terms that, if the F&F settlement offer is not accepted, you will not be drawing down any of the pension fund and no monies will be available to the IVA.

I cannot see your IP forcing you to draw down funds from your pension but you could offer your tax free lump. However this would affect your income in retirement and shopuld not be done lightly and certainly not without considering independent financial advice.

While you may look to get the IVA as soon as possible it may be better for you in the long run to let it run its course and leave your pension alone.