Why can't I take myS226 pension at 55

Baggins16

In May 1988 I took out a Unisure S226 Pension with Norwich Union, now Aviva. At the time the earliest retirement date was 60 and this is the date referred to in the Policy. I am aware that since then the law has been changed to allow retirement from 55 onwards. I had hoped in April to withdraw some monies from my fund, while leaving the remainder invested, and I believed that the new regulations would allow this. However Aviva are saying that I can't take any benefits until I am 60. Are they right ? I should mention that I have a similar S226 Pension with Sun Life and I had no such problem. Many thanks for any help or advice.

agarnett

Didn't (some) S226 policies contain very valuable (now) Guaranteed Minimum Annuity rates? And wasn't that the sort of thing that brought Equitable Life crashing to its knees ?

There's gold in them thar hills (sometimes)

It's just a question of whether you are clever enough to find a way, or if you injure yourself badly, in trying to get it out, or whether you are prepared to sit on your claim and take a very nice income from it per the original plan

But I just don't know if yours is a little gold mine like that.

I am sure someone here might.

dunstonh

At the time the earliest retirement date was 60 and this is the date referred to in the Policy.

Correct.

I am aware that since then the law has been changed to allow retirement from 55 onwards.

Also correct.

I had hoped in April to withdraw some monies from my fund, while leaving the remainder invested, and I believed that the new regulations would allow this.

It is correct that the rules will allow it. However, the provider has to allow it and on legacy/heritage plans, the number of options will be far less than modern plans.

However Aviva are saying that I can't take any benefits until I am 60. Are they right ?

Could be multiple reasons for that. Most likely is that they are still working on 2014/15 rules and not 2015/16 rules as we are not in 2015/16 yet and I dont believe Aviva have published their options that will be available on legacy plans as of yet.

Baggins16

Thanks for that. Sadly no guaranteed minimum annuity. Seems as though I will need to contact Aviva again after April. Might there be any benefit in transferring to another fund if they still say No. I am 57 by the way.

xylophone

http://www.telegraph.co.uk/finance/personalfinance/pensions/11410544/Is-your-pension-firm-ready-to-give-you-full-access-to-your-money.html

http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/contract-based-schemes/retirement-annuity-contracts

http://www.thisismoney.co.uk/money/pensions/article-2251598/Financial-Mail-investigation-easy-guaranteed-annuity-rate.html

Is Aviva saying that you would have to transfer into a PP to access the benefits at 55?

Baggins16

No. I just had a very short letter referring to my ' request to take immediate retirement benefits ' and they then stated that as the minimum retirement age 'under the above policy ' is 60 they were unable to provide an immediate retirement quotation. Seemed like a pro forma standard letter to me !

xylophone

Read the links above.

Read your policy.

Ring Aviva and ask about any GAR.

Ask about whether you can transfer to a PP with the company and access the pension at 55 or if you would have to transfer out.

Ask about any fees/reductions etc.

Baggins16

Thank you for your advice. Am I right in assuming that I should be able to access funds from this Pension although I may need to switch to a Personal Pension. Sorry if I am being a bit thick !!!!

xylophone

I think that you will need to ask Aviva about your options.

There is some general information here about these plans

http://www.financialadvice.net/old_annuity_policies_s226_s620/zone/373
and it appears that access at 55 should not be impossible but only Aviva can tell you what is possible in your particular case.