Sec 32 Buy Out - Was it a good idea?

Fazzmole

Some 25 years ago I had a company pension which I transferred into a section 32 buy out policy with an insurance company. Was this a good idea or should I have left the pension where it was? I'm just curious as I have no real way of assessing whether or not I did the right thing, but someone out there may have a view.

dunstonh

Was this a good idea or should I have left the pension where it was?

Impossible to say without knowing figures and reasons. That said, all pensions taken out between 1988 and 1993 had a mandatory review of them (that was the pension mis-selling period). So, if you returned your questionnaire back then (assuming you sought advice and you didnt do it as part of a non advised bulk transfer) then they would have reviewed the plan to ensure the advice was suitable.

'm just curious as I have no real way of assessing whether or not I did the right thing, but someone out there may have a view.

You can always take it to an IFA now and ask for a review.

Fazzmole

It happened in 1987 so I guess it missed any review questionnaire. I have the buy out documentation. At the time it seemed to be a good idea .... as these things often do. It may be ok but I have no way at all of gauging that.

Is it something I can tae to the insurance company direct?

casey_junior

Theres sweet FA you can do about it, you were probably sold a load of !!!!! by some IFA who walked away laughing up his cuff, as I was, 3 weeks before regulation. You could look at my other posts for more information and an insight into the smug thinking of the old boy club on here.

parcival

Probably no point in worrying about it. It is to late to complain to the Ombudsman.

If it's like mine then it was a poor decision given recent investment returns. At the time the advisor probably thought it was good for you given returns back then.

Fazzmole

I really appreciate the feedback.

I wanted compare what I am due to receive from the Buy Out against what I would have received leaving it frozen in the company scheme. Nothing more than that really. Having said that I only know the transfer value I obtained from the company.

It is a long time ago. For a while it seemed to be going really well but over the past few years it has tailed off considerably.

Reading some of the comments about IFAs, they don't seem all that independent to me. Looking at Unbiased and reading up on some of them plus being in contact with a couple left me with a very low opinion. Trust, certainty, track record and value for money were not ticked on my list. Shame really as it would have been good to work with someone a lot wiser about these matters than me.

Velcro_Hotdog

Fazzmole wrote: »

I really appreciate the feedback.

I wanted compare what I am due to receive from the Buy Out against what I would have received leaving it frozen in the company scheme. Nothing more than that really. Having said that I only know the transfer value I obtained from the company.

It is a long time ago. For a while it seemed to be going really well but over the past few years it has tailed off considerably.

Reading some of the comments about IFAs, they don't seem all that independent to me. Looking at Unbiased and reading up on some of them plus being in contact with a couple left me with a very low opinion. Trust, certainty, track record and value for money were not ticked on my list. Shame really as it would have been good to work with someone a lot wiser about these matters than me.

How many did you speak to? Bit unfair to tar all IFAs with the same brush if you only spoke to a handful.

Fazzmole

I agree that it is more than likely wholly unfair. What did come across from those I spoke to was that they were either selling units or charging a lot of money up front. There didn't seem to be anything in between. Choosing from a list is horrible.

What I need to do is chat things over to see if there is common ground without being sucked into a hideous hourly rate. Equally I can quiet see if someone is flogging a product that their interest is going to go off when they realise you are not for them.

I should know what I am doing in respect of investment, clearly I don't. On the other hand i could advise someone else, or at least discuss the options, but when it comes to me it is just too close!