budget and section 32

I might be completely off base here, but I've got one of those Section 32 policies and it has a GAR of 9.8% attached to it. There's no way I'm going to change anything about the policy. Are you sure that if you moved it, you wouldn't be foregoing something potentially quite valuable?

Paul

billyboggins wrote: »

i am being told by my IFA that foregoing the GMP is NOT an option for me because no one will take over my pension pot whereas the above posts would indicate that it is possible ...getting confused now

When transferring a pension that has GMP, it can be done with the GMP accepted by the new provider and retained or not accepted and the GMP lost.

What you have been told is confusing. I would not be surprised at them saying that keeping the GMP and transferring is not an option (it only is in a minority of cases). However, transferring and giving up the GMP is an option. Although it may not be a suitable option or one that that IFA is prepared to recommend.

From a compliance point of view (and this may vary with certain firms), you find that transferring a S32 to commence retirement income is treated different from transferring a S32 prior to retirement. The latter tends to require occupational pension transferring authorisations. The former does not. An adviser without occupational transfer qualifications and authorisations would not be able to do pre-retirement transfers.

However, the bottom line is that it can be done. I have done one in the last year (and being a higher risk case, I had it checked by a third party compliance officer with higher qualifications than me and it was fine).

billyboggins wrote: »

thanks for that ,what min qualifications does the ifa have to possess to be able to do what i want ,i.e.
take a lump sum,give up my GMP and take a smaller pension which as i previously explained would be my preferred option ?

At retirement, it doesnt require any other qualification. However, J05, G60 or AF3 are desirable as those qualifications are a much higher standard than the default and have a particular focus on the unusual or niche areas that the main qualification would not.

Whilst IFAs are not required to have those qualifications to give higher risk pension income options advice, a number of restricted whole of market FA firms do require their advisers to have that those qualifications to give advice.

billyboggins wrote: »

so are you saying
that at my retirement i can DIY ?

That will be down to the receiving company to decide. I don't have great knowledge of what all the DIY companies do (mainly reliant on what is posted here). My knowledge is on the IFA side.