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    • Muscle750
    • By Muscle750 29th Nov 17, 7:29 PM
    • 906Posts
    • 273Thanks
    Muscle750
    Pru issue/question
    • #1
    • 29th Nov 17, 7:29 PM
    Pru issue/question 29th Nov 17 at 7:29 PM
    Ill keep this short as poss. Ive decided to take 25% tax free from my Pru personal pension when im 55 in a few weeks. Approx 3 months ago i rang them to see how id set the ball in motion so to speak. They then told me what my 25% would be and to phone them a month before my birthday which i did.
    I was told i would be sent a info pack explaining the options etc and if i still wanted to proceed then to let them know etc. I was also given another figure of the 25% and was asked if i would be using a IFA which i said no, and they said that was fine.
    So after looking at the option pack which arrived last week i rang them today to set the ball in motion to take the 25% etc.
    I was then told that if i took the 25% i would have to either change the fund i was invested in and go into a drawdown or other situation and they wont do anything unless i use a IFA. Which im then told they can supply one if i so wish otherwise id have to use one of my choice and they cant do anything until this is done.
    I asked why at no point was i told this prior and told them that i was previously asked if i was using a IFA which they said it was fine if i didnt and that i was far from happy been told now after i could have sorted this if id of known months ago.
    They said if i went into a drawdown situation i can take whatever amount i want at anytime and wont be charged for doing so.
    They couldnt tell me how much their IFA would charge either.
    Ive put in a formal compliant to them in the respect of them not informing me of the need of a IFA and basically been told i didnt need one prior by saying it was ok for me not to use one.
    Can anyone give any indication of what their IFA may charge and are they correct in what they are saying.
Page 1
    • dunstonh
    • By dunstonh 29th Nov 17, 8:04 PM
    • 89,873 Posts
    • 56,547 Thanks
    dunstonh
    • #2
    • 29th Nov 17, 8:04 PM
    • #2
    • 29th Nov 17, 8:04 PM
    I was then told that if i took the 25% i would have to either change the fund i was invested in and go into a drawdown or other situation and they wont do anything unless i use a IFA.
    It is not another fund. It is another product. The fund you invest in is not the issue.

    Which im then told they can supply one if i so wish otherwise id have to use one of my choice and they cant do anything until this is done.
    Pru just look up an adviser on one of the directories closest to your postcode.

    They said if i went into a drawdown situation i can take whatever amount i want at anytime and wont be charged for doing so.
    Not strictly true. They put you in their in-house drawdown product and charge you higher annual charges than the product an IFA would use.

    They couldnt tell me how much their IFA would charge either.
    That is because they dont have IFAs. They wont know the charging structure of all the IFAs out there and its unlikely an IFA would use the Pru product.

    Ive put in a formal compliant to them in the respect of them not informing me of the need of a IFA and basically been told i didnt need one prior by saying it was ok for me not to use one.
    You dont need an IFA. They have told you that you can either use their in-house product or use an IFA.
    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 an Independent Financial Adviser local to you.
    • zagfles
    • By zagfles 29th Nov 17, 9:28 PM
    • 12,495 Posts
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    zagfles
    • #3
    • 29th Nov 17, 9:28 PM
    • #3
    • 29th Nov 17, 9:28 PM
    May also be worth considering transferring out, either before or after taking the 25% TFLS.
    • xylophone
    • By xylophone 29th Nov 17, 10:12 PM
    • 23,638 Posts
    • 13,772 Thanks
    xylophone
    • #4
    • 29th Nov 17, 10:12 PM
    • #4
    • 29th Nov 17, 10:12 PM
    Had you considered transferring out of the Pru to another provider who would facilitate drawdown?


    Example
    http://www.hl.co.uk/pensions/sipp
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