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    • Nellie23
    • By Nellie23 15th Jun 17, 11:22 AM
    • 3Posts
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    Nellie23
    Nhs avc
    • #1
    • 15th Jun 17, 11:22 AM
    Nhs avc 15th Jun 17 at 11:22 AM
    I have a small avc with Prudential (approximately £12000) and I am having great trouble in getting my money from them. I requested to take 25% and put the remainder in drawdown but they told me I need to have at least £25000 in my pension pot to be able to do this. I then asked to transfer to another provider ( with whom I have a draw down facility) but I can only do this if I take an annuity with them. An annuity is out of the question because of my small pension pot. I can take the whole pot at once but this will mean me paying tax, which I want to avoid. Is there any other way I can take this pension? Every time I speak to them I am told something different. They didn't even reply to a letter I sent. I am now going down the complains route.
Page 1
    • dunstonh
    • By dunstonh 15th Jun 17, 11:42 AM
    • 88,375 Posts
    • 53,592 Thanks
    dunstonh
    • #2
    • 15th Jun 17, 11:42 AM
    • #2
    • 15th Jun 17, 11:42 AM
    I requested to take 25% and put the remainder in drawdown but they told me I need to have at least £25000 in my pension pot to be able to do this.
    That is correct with their in-house non-advised product. It has a minimum. Mainly as most people with that sort of amount would go for full encashment or transfer to consolidate with other pensions.

    I then asked to transfer to another provider ( with whom I have a draw down facility) but I can only do this if I take an annuity with them.
    That is the case if you have asked Pru to pay the 25%. It is called the open market option. However, you dont have to buy an annuity on full transfer. This appears to be a misundertanding.

    I can take the whole pot at once but this will mean me paying tax, which I want to avoid.
    Will you be paying the same rate of tax on the drawdown?

    Every time I speak to them I am told something different. They didn't even reply to a letter I sent. I am now going down the complains route.
    Remember that they do not hold the regulatory permissions to give advice or opinion or discuss potential solutions that may exist in the marketplace. They can discuss their own product range (but not advice or opinion on it) and they order take from what you or your adviser tells them.

    Just ask them for pension discharge forms.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • woolly_wombat
    • By woolly_wombat 15th Jun 17, 11:42 AM
    • 474 Posts
    • 277 Thanks
    woolly_wombat
    • #3
    • 15th Jun 17, 11:42 AM
    • #3
    • 15th Jun 17, 11:42 AM
    They didn't even reply to a letter I sent. I am now going down the complains route.
    Originally posted by Nellie23
    Good. Please let us know how you get on.
    • xylophone
    • By xylophone 15th Jun 17, 12:44 PM
    • 22,054 Posts
    • 12,719 Thanks
    xylophone
    • #4
    • 15th Jun 17, 12:44 PM
    • #4
    • 15th Jun 17, 12:44 PM
    You might approach Hargreaves Lansdown to enquire about a transfer out of the AVC.

    If they are willing, they would organise the transfer into a SIPP and you would then be in a position to take the 25% and draw down as suits you.
    • Nellie23
    • By Nellie23 1st Jul 17, 2:18 PM
    • 3 Posts
    • 0 Thanks
    Nellie23
    • #5
    • 1st Jul 17, 2:18 PM
    • #5
    • 1st Jul 17, 2:18 PM
    I have now taken a SIPP with HH and asked them to move my Prudential pot into it. Unfortunately Prudential do not do electronic transfers (!) so I am now waiting for pension discharge papers from them. In the meantime I have received a letter from them saying they are investigating my complaint, which will be interesting as I haven't officially complained to them yet. I only told the adviser that I would now need to go down the complaints route and I thought I would receive a form to fill in. I wonder how much longer this is going to take.
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