Guardian Personal Pension advice needed

GeorgeC_2

Help needed - and apologies if this has already been answered elsewhere.

I have been resident in France for the last ten years and have a Choices Personal Pension Plan with Guardian Assurance.

I am 59 and my chosen retirement date is February 2010 when I will be 60.

For health reasons wish to take the 25% cash sum out of the pension plan.

I telephoned Guardian this morning to request this and was told that under their plan I cannot take just the 25% but must take the whole amount or transfer to another company who will allow me to take just the 25%.

They are now sending me an ‘Immediate Retirement Pack’.

My yearly statement dated May 2009 shows the following on the first page:

Total value of your Choices Personal Pension Plan £60290.99

Within the document it gives the following figures:

Retirement Benefits (other than those secured by Protected Rights)

Estimated cash fund at selected retirement age Higher 95400 Lower 93000
Cash sum of Higher 23800 Lower 23200
Reduced pension per annum Higher 3780 Lower 3690

Protected Rights Benefits

Estimated cash fund at your State Pension Date Higher 54300 Lower 43900
Cash sum of Higher 13500 Lower 10900
Reduced pension per annum Higher 3020 Lower 1580

I do not want to transfer to another company -can anyone offer advice on the likely figure I will receive?

Kind regards,

George C

dunstonh

I do not want to transfer to another company -can anyone offer advice on the likely figure I will receive?

As you dont want to transfer then you will get a fairly low value as annuity rates on legacy plans tend to be quite poor unless there are guarnateed annuity rates. That said, Guardian did have guaranteed annuity rates on a lot of their plans. So transfer/OMO may not be needed.

The figures quoted to you already are what you should plan on.

GeorgeC_2

Many thanks for the quick reply.

I also rang a UK pensions advice service who said that I would only get 25% of the £60290 in cash and not the higher figures quoted in the plan. The balance of the pension fund would have to be transferred to another company to buy an annuity.

Now thoroughly confused! Any advice gratefully received.

Kind regards,

George C

dunstonh

I also rang a UK pensions advice service who said that I would only get 25% of the £60290 in cash and not the higher figures quoted in the plan. The balance of the pension fund would have to be transferred to another company to buy an annuity.

That doesnt sound right. Guardian do issue annuities. They dont do drawdown though so that would require transfer.

The illustrations are compliant with FSA rules so thats the best you are going to get as far as information goes.

GeorgeC_2

Many thanks again.

I have just rung Guardian in the UK and there customer service is pretty useless.

They say that they cannot sell me an annuity.

I have found another page of my statement which states that my Voluntary Transfer Value is £90305 and my Protected Rights Transfer Value is £35129.

Total Transfer Value £125435.

They cannot tell me whether the 25% cash sum is based on £60290 or on the higher figures quoted in the document.

If they cannot sell me the annuity, where does the 75% balance of the plan go?

Thanks again.

Kind regards,

George C

dunstonh

I have just rung Guardian in the UK and there customer service is pretty useless.

To be expected as they dont exist any more as a trading entity.

They say that they cannot sell me an annuity.

They cant sell you an annuity but from my experience (all the Guardian plans I have come across over the years) they do offer an annuity on crystallisation of an existing plan. That isnt treated as being sold one but basically excercising an option on the existing pension fund. It has been a few years since I last saw one though. So, it may be a recent change (i believe some rules changed in 2006 allowing providers to cease offering annuities if they wanted to).

If they cannot sell me the annuity, where does the 75% balance of the plan go?

If they dont allow crystallisation of benefits on your particular plan then you will need to transfer the whole 100% to a provider that does. They will then pay the 25% (and leave the 75% invested if you choose that option or use the 75% to provide an annuity)

GeorgeC_2

Thanks yet again.

When I spoke to Guardian this morning they stated that the money would be paid into my bank around two weeks after receiving the completed request forms back!?

Sorry to be ignorant but I do not understand the term 'crystallisation of the plan'.

Also, does the fact that I am French resident and pay tax in France have any financial implications?

Youe help is very much appreciated.

Kind regards,

George C

MikeJones_2

Hi George,

GeorgeC wrote: »

Sorry to be ignorant but I do not understand the term 'crystallisation of the plan'.

It's a term commonly used to express the fact that you will be converting the pension fund that you have accumulated into actual benefits (i.e. pension and/or cash lump sum).

In addition to what dunstonh has commented in his replies, I'd suggest you would be well advised to seek the assistance of an IFA.

There are multiple options available to you and an IFA who specialises in 'at retirement' provision will be able to discuss these with you so that what you choose best matches your personal situation. The IFA will also consider any implication of you living in France.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

When I spoke to Guardian this morning they stated that the money would be paid into my bank around two weeks after receiving the completed request forms back!?

If they are paying the 25% then they have to offer an annuity. They cannot do one without the other.

Sorry to be ignorant but I do not understand the term 'crystallisation of the plan'.

crystallisation is the term when you take the benefits. Your crystallise the pension fund.

Also, does the fact that I am French resident and pay tax in France have any financial implications?

the income is subject to tax and most providers will want to pay it into a UK bank account. Are you likely to stay in France now or is it possible you could return to the UK?

GeorgeC_2

Many thanks to both of you for your replies.

I am not likely to return to the UK to live and no longer have any UK bank accounts.

My wife does, and on my initial call to Guardian, I was told that the money could be paid into her account.

Thanks again.

Kind regards,

George C

EdInvestor

It is quite difficult to find Uk providers and advisors who will act on behalf of overseas residents nowadays because of the new EU Mifid rules.

But you may at least get some competent guidance via email from these two providers about what is actually possible in your circs as far as extracting the 25% tax free cash goes:

www.h-l.co.uk (also has an IFA arm which does annuities)
www.sippdeal.co.uk