Author Topic: Protected Tax Free Cash (PTFC)  (Read 706 times)

never give up

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Protected Tax Free Cash (PTFC)
« on: September 02, 2019, 02:17:41 AM »
Hi UK MMMers. Iíve recently applied for a partial transfer from a company DC pension into a SIPP. Iíve done this to benefit from a wider choice of funds as well as cheaper fees. However my transfer has been held up, Iíve learned, after being called this morning, as they need to know if I am happy to give up my PTFC. Umm. Oo er. I thought a partial transfer was a simple thing to do and that I wouldnít be Ďgiving upí anything by doing it.

Iím going to receive a pack that will tell me more but Iím a bit concerned it will be full of jargon and not very clear. Has anyone completed a partial transfer and had a similar decision to make? For all I know this is going to cost me 35p or something but alternatively I donít want to hit retirement in 20 or so years just to find out 80% of my pot is now sacrificed all because of the PTFC decision I made 20 years previous!

Any thoughts are much appreciated and hopefully the post may help others that want to partially transfer their pension in the future.

Kwill

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Re: Protected Tax Free Cash (PTFC)
« Reply #1 on: September 07, 2019, 03:04:58 AM »
This is completely new to me, but I'm curious to hear what others have to say.

never give up

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Re: Protected Tax Free Cash (PTFC)
« Reply #2 on: September 07, 2019, 03:28:15 AM »
Yes I hadnít heard of it before but by all coincidence it made an appearance in one of the latest Monevator postings. It appears to be around potential entitlements to more than just the normal 25% tax free lump sum. That sounds quite important to me although Iíve no idea what the rules will be by the time I come to take the pension. As a result Iím going to cancel the transfer so I donít lose anything here concerning this.