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  • FIRST POST
    • SevenOfNine
    • By SevenOfNine 6th Jul 17, 6:05 PM
    • 1,121Posts
    • 1,060Thanks
    SevenOfNine
    Age 65, Pension provider insists I consult IFA
    • #1
    • 6th Jul 17, 6:05 PM
    Age 65, Pension provider insists I consult IFA 6th Jul 17 at 6:05 PM
    Apologies, very little info to go on but here goes.

    If someone has reached the age of 65, can the pension provider dictate that they MUST consult an IFA before allowing them any access to any of their pension pot?

    This is going to cost upwards from £500, when they already know what they want to do it seems a bit much to be forced to consult an independent person at their own expense.

    Are there any links to info relating to the rights/wrongs of this insistence, nothing much coming up when I search.
    Seen it all, done it all, can't remember most of it.
Page 1
    • tacpot12
    • By tacpot12 6th Jul 17, 7:18 PM
    • 625 Posts
    • 548 Thanks
    tacpot12
    • #2
    • 6th Jul 17, 7:18 PM
    • #2
    • 6th Jul 17, 7:18 PM
    It is absolutely required (by the FCA) if you are seeking to transfer the pension from a defined benefit arrangement to a money purchase arrangement, and you will get nowhere trying to fight it.

    On the other hand if you are only seeking to withdraw the lump sum that was promised on pension commencement and you are happy to start drawing the benefits the scheme offered, the you don't have to consult an IFA. Which is it?
    • sevenhills
    • By sevenhills 6th Jul 17, 7:28 PM
    • 478 Posts
    • 181 Thanks
    sevenhills
    • #3
    • 6th Jul 17, 7:28 PM
    • #3
    • 6th Jul 17, 7:28 PM
    This is going to cost upwards from £500, when they already know what they want to do it seems a bit much to be forced to consult an independent person at their own expense.

    Are there any links to info relating to the rights/wrongs of this insistence, nothing much coming up when I search.
    Originally posted by SevenOfNine
    I was charged about £1k; I was shocked.
    • xylophone
    • By xylophone 6th Jul 17, 9:21 PM
    • 22,852 Posts
    • 13,207 Thanks
    xylophone
    • #4
    • 6th Jul 17, 9:21 PM
    • #4
    • 6th Jul 17, 9:21 PM
    Are you seeking to transfer a DB pension to a DC pension?

    Are you trying to transfer a DC pension with safeguarded benefits to another arrangement?

    In either case are the benefits valued at more than £30,000?
    • bigadaj
    • By bigadaj 7th Jul 17, 12:22 AM
    • 9,899 Posts
    • 6,317 Thanks
    bigadaj
    • #5
    • 7th Jul 17, 12:22 AM
    • #5
    • 7th Jul 17, 12:22 AM
    I was charged about £1k; I was shocked.
    Originally posted by sevenhills
    For what?.....
  • jamesd
    • #6
    • 7th Jul 17, 2:22 AM
    • #6
    • 7th Jul 17, 2:22 AM
    For a defined benefit pension there is no need for financial advice before taking its normal benefits. It is a mandatory legal requirement for a scheme to verify that you have taken financial advice before transferring out if that value over a normal life expectancy is more than thirty thousand pounds. You don't have to follow that advice, just get it.

    For a defined contribution pension you can take the 25% tax free lump sum without advice being mandatory. If there is a defined benefit līke a guaranteed annuity rate it is a mandatory legal requirement for the scheme to see proof of advice before a transfer if the guarantee value is more than £30k over a typical lifetime. You aren't required to follow the advice, just get it. No advice is required to take the guaranteed benefit.
    • sevenhills
    • By sevenhills 7th Jul 17, 6:16 AM
    • 478 Posts
    • 181 Thanks
    sevenhills
    • #7
    • 7th Jul 17, 6:16 AM
    • #7
    • 7th Jul 17, 6:16 AM
    I was charged about £1k; I was shocked.
    Originally posted by sevenhills
    A £43k personal pension, I needed £35K for a deposit.
    • AnotherJoe
    • By AnotherJoe 7th Jul 17, 7:35 AM
    • 7,218 Posts
    • 7,719 Thanks
    AnotherJoe
    • #8
    • 7th Jul 17, 7:35 AM
    • #8
    • 7th Jul 17, 7:35 AM
    OP it depends what you are exactly trying to do, about which you give no detail. People have assumed you are trying to transfer a DB to a DC but maybe not. there are other nuances as well, it may be like Sevenhills you are looking to liquidate it all and thereby lose a lot in tax.

    Without more detail your question cannot be properly answered.
    • sandsy
    • By sandsy 7th Jul 17, 8:16 AM
    • 1,171 Posts
    • 677 Thanks
    sandsy
    • #9
    • 7th Jul 17, 8:16 AM
    • #9
    • 7th Jul 17, 8:16 AM
    If someone has reached the age of 65, can the pension provider dictate that they MUST consult an IFA before allowing them any access to any of their pension pot?
    Originally posted by SevenOfNine
    In certain circumstances, yes they can.

    If your pension contains any guarantees at all about the level of pension income you may get, then you are legally required to take regulated financial advice if you are considering not taking up those guarantees. The law was put in place in 2015. The scheme is not allowed to release the money until they have proof that the advice has been taken.

    Otherwise, if your pension doesn't have any guarantees, then there's other ways to get at your money which don't require you to take advice.
    • Malthusian
    • By Malthusian 7th Jul 17, 10:21 AM
    • 2,864 Posts
    • 4,074 Thanks
    Malthusian
    A £43k personal pension, I needed £35K for a deposit.
    Originally posted by sevenhills
    Very reasonable [the £1,000 fee]. I wouldn't carry the liability for when you came back and complained that you've got a house but no money to live on in retirement and pay the mortgage with, and I shouldn't have let you do it, for £1,000.
    • SevenOfNine
    • By SevenOfNine 7th Jul 17, 12:26 PM
    • 1,121 Posts
    • 1,060 Thanks
    SevenOfNine
    Thanks everyone for trying to respond, I thought I'd been asked to find an answer with scant info!

    Appreciate efforts to try to help though, I'll print them & leave the retiree to see if it helps.........or to give me more info. Only other bit I know is he wants to have a £15000 lump sum now.

    Seen it all, done it all, can't remember most of it.
    • sevenhills
    • By sevenhills 7th Jul 17, 1:36 PM
    • 478 Posts
    • 181 Thanks
    sevenhills
    Very reasonable [the £1,000 fee]. I wouldn't carry the liability for when you came back and complained that you've got a house but no money to live on in retirement and pay the mortgage with, and I shouldn't have let you do it, for £1,000.
    Originally posted by Malthusian
    I was expecting some sort of withdrawal charges, they dressed them up as fees for an advisor, but the advisor seemed to be a employee of the pension provider, the Pru.
    • AnotherJoe
    • By AnotherJoe 7th Jul 17, 1:37 PM
    • 7,218 Posts
    • 7,719 Thanks
    AnotherJoe
    Thanks everyone for trying to respond, I thought I'd been asked to find an answer with scant info!

    Appreciate efforts to try to help though, I'll print them & leave the retiree to see if it helps.........or to give me more info. Only other bit I know is he wants to have a £15000 lump sum now.

    Originally posted by SevenOfNine
    That doesn't help at all. £15k out of £31k or a million?

    What's the £15k for? Might seem a strange question but apparently a lot of people take a lump sum and stash it in bank "just because they can" even though they may end up paying unneeed tax on it.
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