Moving pensions into SIPP - problem with guaranteed rights one

jamesd

Old Slaphead, if it was defined contribution you could probably do it by transferring. If it's a section 32 buyout pot HL is one company that would probably be willing to receive it. You could move it on from there if you wanted to. The risk of section 32 buyout bonds is that some can contain money that has benefits other than the pure defined contribution benefits so even if yours is one and contains only pure DC money it could still be considered unsafe.

Might also be related to guaranteed rights of some sort or the investment(s) within it.

Old_Slaphead

It was a PPP.

jamesd

Then just transfer elsewhere and do what you want. It's an Aviva rule, not a legal one.

dunstonh

Aviva dont need an IFA to transfer out of them with a PPP. They may need one to transfer into one of theirs (if its one of the plans their own small salesforce cant do or its a group scheme)

Old_Slaphead

jamesd wrote: »

Then just transfer elsewhere and do what you want. It's an Aviva rule, not a legal one.

I'm happy with the Aviva personal pension plan and I don't particularly want the hassle &/or costs of transferring - I was just wanting to take the TF cash element.

Aviva were quite happy to take the investments on an EO basis - I'm just not sure why the now require IFA sanctioning when I'm prepared to sign an indemnity.

Presumably other companies don't have these 'rules', do they ?????

nb - should I wish to transfer in to my existing scheme without an IFA - they're prepared to accept that!

dunstonh

Old_Slaphead wrote: »

I'm happy with the Aviva personal pension plan and I don't particularly want the hassle &/or costs of transferring - I was just wanting to take the TF cash element.

Aviva were quite happy to take the investments on an EO basis - I'm just not sure why the now require IFA sanctioning when I'm prepared to sign an indemnity.

Presumably other companies don't have these 'rules', do they ?????

Ahh. That now changes the position.

Aviva's personal pensions dont offer unsecured pension income. You have to transfer it to one that does or their drawdown plan. Drawdown is still considered to be a higher risk area. So, it is probably something their salesforce cannot do (common restriction on salesforces). So, in these cases, the usual pointer is to an IFA.

Transferring it out of Aviva would not have required an IFA. Transferring it into a new Aviva pension (and it would be considered a new product in the FSA eyes) would have.

Presumably other companies don't have these 'rules', do they ?????

In your scenario, yes they do.

jamesd

Old_Slaphead wrote: »

Presumably other companies don't have these 'rules', do they ?????

Depends on the company. Traditional insurance and pension companies probably do because of the drawdown issue. Places like Hargreaves Lansdown don't and would happily do it execution only.

[Deleted User]

Old_Slaphead wrote: »

Suppose you still want to go ahead even if the IFA advises otherwise. What would happen then?

Hargreaves Lansdown need to see a letter from an IFA and then something in writing from you overruling it.

Old_Slaphead

dunstonh wrote: »

Ahh. That now changes the position.

Aviva's personal pensions dont offer unsecured pension income. You have to transfer it to one that does or their drawdown plan.

Thanks.

So correct me if i misunderstand - assuming I wish to leave my pensions invested and not, at this stage, take income benefits (ie go into drawdown, purchase an annuity etc), then I'm not allowed to withdraw 25% taxfree cash unless an IFA sanctions it?

Given that pension company were happy enough to set up my policy up on an execution only basis why do they now deem that I am no longer intelligent enought to decide how to manage my plan and accept the consequences of my own decisions?

dunstonh

So correct me if i misunderstand - assuming I wish to leave my pensions invested and not, at this stage, take income benefits (ie go into drawdown, purchase an annuity etc), then I'm not allowed to withdraw 25% taxfree cash unless an IFA sanctions it?

25% is putting the plan into drawdown/unsecured income option. The plan has to offer that facility. If it doesnt (which most Aviva plans do not) then you have to transfer it to another provider or an alternative plan with Aviva that does allow it. If Aviva dont allow their sales reps to transact drawdown cases then they will tell you to use an IFA if you want to use an Aviva plan. If you dont want an Aviva plan then you use a DIY provider without an IFA.

Given that pension company were happy enough to set up my policy up on an execution only basis why do they now deem that I am no longer intelligent enought to decide how to manage my plan and accept the consequences of my own decisions?

Because it involves the purchase of a new product which carries greater risks and they dont want you complaining a few years down the road that you did the wrong thing. Often it is cheaper to turn it away than to take on the liability.