Aegon Section 32 GMP problem

chezhutch

Hi I wonder if any one can help, I also have a Aegon private pension which has a value of aproximately £110,000, however it is linked to a GMP scheme and will not allow me to access the funds until I am 65 even though I took out the pension on the basis It would mature when I was 55. The reason I have been informed is the fund would need to be at least £350,000 to provide the minimum guaranteed pension at 65. I have contacted the financial Ombudsman Service and whilst they agree I was miss sold my pension my only recourse is with the agent not Aegon as this was pre regulation, unfortunately the agent has ceased trading. My only objective when I transferred from a salary linked scheme to this one was to give me access at 55 no other reason and this has now seriously affected my retirement plans. Even though I would benefit at 65 from Aegon's requirement to top up the value this assumes I will safely reach this age and continue to draw against this GMP for an adequate period before death. This was never the sought of pension I wanted as I lost both my parents before the age of 65. Can any give me advise on how I might be able to get out of this scheme and access my funds, Transfer? I.e. before April 2015.

xylophone

I also have a Aegon private pension which has a value of aproximately £110,000, however it is linked to a GMP scheme and will not allow me to access the funds until I am 65

Presumably not the old Scottish Equitable type with a reserved and non reserved fund. See post 3 http://forums.moneysavingexpert.com/showthread.php?t=5126700

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

dunstonh

I have contacted the financial Ombudsman Service and whilst they agree I was miss sold my pension my only recourse is with the agent not Aegon as this was pre regulation, unfortunately the agent has ceased trading.

That does not make any sense. The FOS would not investigate a complaint and give an outcome without the firm first making a response to the complaint first. Are you sure it was a proper investigation or was it just their phone line? (which is manned by unqualified staff who agree with everything you say as part of their script).

Even though I would benefit at 65 from Aegon's requirement to top up the value this assumes I will safely reach this age and continue to draw against this GMP for an adequate period before death. This was never the sought of pension I wanted as I lost both my parents before the age of 65.

You can give up the GMP and take it early but usually its a bad idea to do so. To have GMP in a retail pension (the type that falls under the FOS justification), it means it would have originated in another pension and been transferred to this one. So, in reality, the age 55 objective may have never been possible. Any excess amount or personal contributions to a personal pension would be accessible at 55.

Can any give me advise on how I might be able to get out of this scheme and access my funds, Transfer? I.e. before April 2015.

You can transfer it and give up the GMP but you would probably need an adviser and if you think life expectancy is an issue then you should certainly see an adviser as death benefits and medical situation need to be taken into account.

xylophone

You can transfer it and give up the GMP but you would probably need an adviser and if you think life expectancy is an issue then you should certainly see an adviser as death benefits and medical situation need to be taken into account.

See http://forums.moneysavingexpert.com/showthread.php?p=66537854&highlight=#post66537854

post 14 and 18

chezhutch

Hi in reply the policy is an old Scottish Equitable type with a reserved and non reserved fund. Aegon did defend their position with the Ombudsman Service stating I had all the information when I was sold the plan, however they hid behind their agent who's letter and predictions all surrounded my overwhelming wish to draw on the pension at 55 because of the early loss of my parents. With hindsight it would appear this pension would never had hit the target required and to that I think the agent must have known and was only interested in the £4,000 commission not my future which puts me off FA's & Agents as such. Where can I go to get the best advice without being ripped off again.

dunstonh

xylophone wrote: »

See http://forums.moneysavingexpert.com/showthread.php?p=66537854&highlight=#post66537854

post 14 and 18

If the GMP is to be retained then the receiving company has to agree to accept it. If the transfer value is low, then its unlikely any will accept it. If the GMP is to be given up (and the consequences that go with it) then the receiving scheme will usually want an adviser to deal with it given the consequences of forfeiting the GMP.

Aegon did defend their position with the Ombudsman Service stating I had all the information when I was sold the plan, however they hid behind their agent who's letter and predictions all surrounded my overwhelming wish to draw on the pension at 55 because of the early loss of my parents.

Aegon have no liability for the advice given by a third party. The seller was not their agent. If it had of been, then the FOS would have looked into the complaint. So, they quite correctly defended their position of having no liability. It is unlikely the FOS would have investigated the advice as Aegon wouldnt have a clue what the advice was and the FOS would not have access to the documentation to decide whether advice was suitable or unsuitable.

xylophone

Hi in reply the policy is an old Scottish Equitable type with a reserved and non reserved fund

Are you allowed to take/transfer the non-reserved fund after the age of 55 but before GMP age?

http://www.hard-facts.net/cgi-bin/forum/fxm.cgi?act=ST;f=1;t=9063;st=0

http://forums.moneysavingexpert.com/showthread.php?t=4486991 see post 17.

http://forums.moneysavingexpert.com/showthread.php?t=5126700 OshB5 is also under GMP age (he's 56).

See also https://expertpensions.co.uk/forums/topic/s32-deficit-gmp-liability/

"Some providers earmarked the whole funds in s32 (GMP and non-GMP) to provide for the GMP liability, others had the GMP-only fund/liability ring-fenced. It’s worth checking. Providers got wise to the fact that GMP was the golden goose and had to back-track rapidly on some mounting future liabilities."

chezhutch

Hi thanks for your replies. It would appear I can not access either funds only if the value of the reserved fund matched the value required for the GMP.

chezhutch

Hi if I transfer can I transfer to a self administered scheme/fund ? obviously giving up the GMP. What would be the best pension to give me full access to all the funds in April this year.


Kind Regards

xylophone

Did you read posts 14 and 18 of http://forums.moneysavingexpert.com/showthread.php?p=66537854&highlight=#post66537854

They refer to a question put by Bob the Builder here

http://forums.moneysavingexpert.com/showthread.php?t=4916250

He was advised that he could not access his S32 at 60 but apparently a transfer out was allowed because the CETV was greater than the amount required to pay the GMP.

What is the CETV of your S32 and could Aegon's actuaries give the required certification as above?

Even if so, any receiving scheme is likely to require you to have taken the advice of an IFA qualified in pension transfers?

https://www.unbiased.co.uk/find-an-adviser?gclid=CIa2yNGZ88ICFU6WtAodG3QA8w

http://www.moneymarketing.co.uk/news-and-analysis/pensions/fca-reviews-pension-transfer-qualifications/2013823.article might be of interest.