Pension being wound up by PIC

jamesd

It's possible that the trustees have no choice but to spend more on an annuity than a transfer value due to scheme rules. Still, what really matters is what the annuity terms are. If it's a level annuity or single life inflation-linked nothing can salvage it because the state pension would be better value. I'm not sure what restrictions the trustees would have for a pension being wound up but the extra money to buy an annuity doesn't seem to be there.

simpywimpy

Ive decided to go with the drawdown offered at h-l.co.uk. Im planning to take the 25% tax free. My question now is, if I take this before april 6th, can I then take another 25% tax free because its a new tax year?

Linton

simpywimpy wrote: »

Ive decided to go with the drawdown offered at h-l.co.uk. Im planning to take the 25% tax free. My question now is, if I take this before april 6th, can I then take another 25% tax free because its a new tax year?

No you can only take the first 25% tax free in total. After April this could be 25% of each drawdown instead of an initial 25%.

simpywimpy

after lots of reading etc we have decided which plan we want to go into, sent off the forms etc only to get them back today saying we need an IFA report.

Is there one I can just email all the details too and get one back through the post?

dunstonh

simpywimpy wrote: »

after lots of reading etc we have decided which plan we want to go into, sent off the forms etc only to get them back today saying we need an IFA report.

Is there one I can just email all the details too and get one back through the post?

No. Its unlikely given the info and work needed. Not impossible but a heck of a lot more detailed than you are probably looking for. An adviser will need your personal details. They would do an analysis and there is no guarantee they would come to the same decision as you. They certainly wouldnt recommend HL (IFA providers are cheaper)

simpywimpy

do we actually have to go with what the ifa recommend?

Hubby is hopeless and leaves all this to me though I did get him to sign me a letter of authority to deal with it. Will that allow me to deal with the IFA?

simpywimpy

Got an IFA calling around tomorrow If he suggests a product that we are comfortable with and we decide to go for it, will that be acceptable as having taken independent advice?

DaveMcG

Are you sure he is properly regulated to advise on pension transfers? That involves calculations and comparisons of benefits, so it is unlikely that would be done in one visit.

You can check authorisation here

http://www.fsa.gov.uk/register/home.do

dunstonh

simpywimpy wrote: »

Got an IFA calling around tomorrow If he suggests a product that we are comfortable with and we decide to go for it, will that be acceptable as having taken independent advice?

You wont get a recommendation tomorrow. The adviser will need to write to the administrator asking a range of questions. They will need to wait for the response back. In the mean time, they will ask you about your financial affairs, your objectives, your risk profile etc. Then the adviser will complete an analysis, which will largely be software driven and then make a recommendation. Statistically, 9 out of 10 recommendations will be to leave it where it is. So, that could end up being the advice.

If you do not transact via the IFA, the IFA carries no liability for the advice if you use a more expensive provider like HL. (as critical yield comparisons will be based on providers that will be cheaper than HL). Now, whether HL are willing to accept the liability after that will be up to them and perhaps that is something you need to raise with them before you commit to an adviser that is likely to cost you thousands.

simpywimpy

Just checked the link from above and it states the following
Advising on investments (except on Pension Transfers and Pension Opt Outs)

Does this mean he is not suitable?

I did explain in my initial emails with him exactly what the pension was and what we wanted to do ie transfer it
Have sent a text message asking him the above.