Pension Freedom

dunstonh

Yes there's all this how easy it is to get your pension till you actually try and getting it and then as facing with weeks of paperwork.

And why is that a problem?

I asked my company about this as I am 56, they said I could not do draw down with them and I had to contact the pension providers and they said the only way to do it would be to transfer out to another one that would do it, so that's what I have been doing, but this is where a lot of people seem to be having the problems its not as cut and dried as people first thought, a lot of companies are looking at legal loop holes to keep the money in the plan and not let people have it.

They are not looking at legal loopholes to keep the money. Mostly, it is going through as it should be there are inevitable issues of staff learning the rules (and sometimes getting them wrong) and consumers using mixed terminology which can confuse issues. Couple that with a temporary short term increase in workload due to it just starting.

Of course they want people to buy annuitants so they will never get what they should get unless you live to be 95 years old.

Why would they want to do that? Drawdown earns them more over the long term. Plus you tend to find the breakeven point is much much earlier than the 40 years you are suggesting. Typically 10-20 years.

so in my case I was told be the new company that where my pension is held at that they could do this all electrical and then i get another letter saying the people that hold my pension don't use that system.

Does it really matter to you whether bits are sent electronically or post?

I then called them up today and asked them what the progress was of this, they said we have a meeting with your company tomorrow and we need the transfer packs off them, but then when i ring my pensions department up they said its with the lawyers and its going to take another 2 weeks.

Solicitors do not get involved with pension transfers. So, this sounds mightily suspicious. Unless, they have reason to believe you are committing financial crime or are possibly a potential victim of financial crime (such as planning to invest in some dodgy area like cape verde property, biofuels, forrestry etc).

and when ever i get it could be 6 - 8 weeks down the line of course we know what these companies are doing putting our money into a high interest account to get it back but again its us that's still waiting, how long is the waiting time to be fobbed off?

Why would they put the money in an interest bearing account when they dont actually have the money to do that? (you would still be in the assets held in the pension).

atush

Quote:
Originally Posted by SilverArrowUK View Post
for something that's supposed to be simple it seems like no one was geared up for this happing

Seems to me we have known about this for about a year now. So why didn't you start your paperwork earlier?

And what makes you think (esp if you are of good normal health) that an annuity will be a bad choice? They still might be the best choice for some people.

SilverArrowUK

my friend is 65 he has a couple of pensions and wanted to do the draw down now he's been told that one of them is a deferred pension so it cant take it because he dosent want to have an annuity he said i will have to be 95 before i would break even on it and he's 65 now.

he's been told that it has protected rights, I don't think that this was covered when they thought these up, its not he has had cancer and yes been given the all clear but he said i would rather enjoy it now and leave some to his daughters, he said all i can do is leave it in another 12 months and hope the government change the rules on these as well.

SilverArrowUK

what they told me on the phone today, that these transfer packs are with the lawyers and it will take another 2 weeks , so maybe they have been told to say that just to shut people up and put them off calling for a couple of weeks, what makes me laugh is the person that said that works for our company in the pensions department, i think i will have to give them a call back and ask them about this.

dunstonh

my friend is 65 he has a couple of pensions and wanted to do the draw down now he's been told that one of them is a deferred pension so it cant take it because he dosent want to have an annuity he said i will have to be 95 before i would break even on it and he's 65 now.

Your friend is wrong. In the context you describe, Deferred would seem to indicate it is a defined benefit scheme and no annuity is purchased with those.

he's been told that it has protected rights, I don't think that this was covered when they thought these up

Protected rights on money purchase schemes was abolished a couple of years ago.

its not he has had cancer and yes been given the all clear but he said i would rather enjoy it now and leave some to his daughters

Which he can do with an annuity or with drawdown. However, if he has a deferred pension then annuities are not the issue.

what they told me on the phone today, that these transfer packs are with the lawyers and it will take another 2 weeks , so maybe they have been told to say that just to shut people up and put them off calling for a couple of weeks, what makes me laugh is the person that said that works for our company in the pensions department, i think i will have to give them a call back and ask them about this.

All that suggests that this is not a personal pension but an occupational pension. So, you shouldnt expect reforms that mostly apply to personal pensions to exist on occupational pensions. Is it a money purchase occupational scheme or a defined benefit pension scheme?

Rate_tart?_sticks_and_stones.....

You may also need to use an IFA if the product you choose will only accept business via an IFA.[/QUOTE]

A quick update since my original post and yours and others very helpful answers, I received the relevant application forms from Cavendish Lansdown and they raised more questions than answers.

I have now engaged the services of a IFA recommended by a close friend and feel much happier. I am confident that IMO (stock market crashes aside!) the cost of his advice is likely to be met from investing my pension while it is in drawdown. Even if it is not he raised issues that I was not aware of e.g. my state pension will be lower as I was a civil servant and a local government employee for 20 years, prior to taking out my Scottish Equitable (now Aegon) pension.

Thanks to everyone here for helping me

xylophone

what they told me on the phone today, that these transfer packs are with the lawyers and it will take another 2 weeks , so maybe they have been told to say that just to shut people up and put them off calling for a couple of weeks, what makes me laugh is the person that said that works for our company in the pensions department, i think i will have to give them a call back and ask them about this.

I think that you and your friend might be getting very confused.

Do you know the difference between a defined benefit pension and a defined contribution pension?

I suspect that your friend has a deferred defined benefit pension. It is very unlikely that he has not now reached the Scheme Pension Age, so presumably could take his pension from the Scheme. He would prefer not to do this but to transfer out to a DC arrangement and access his pension under drawdown rules.

If this pension is with a private company, it might be possible to arrange a transfer out but if the value of his benefits is greater than £30,000 then he will need to seek the advice of an IFA qualified in pension transfers.

With regard to your own situation, do you have a Defined Contribution pension or a Defined Benefits Pension?

xylophone

Seems to me we have known about this for about a year now. So why didn't you start your paperwork earlier?

The pension providers also had a year to prepare....

http://www.thisismoney.co.uk/money/pensions/article-3064361/Savers-claim-firms-delaying-nit-picking-pension-cash-requests.html

nandrews

I have sought the advice of two IFA's on a free quote basis.
The first wanted to know a lot of details about my current expenditure and expectations for pension. Which seemed unneccessary when I merely wanted to maximise my pension income.
The second worked with the basic details I gave him and presented a summary of his 'free' findings. But he told be the full report would cost me £1000, which was rather a shock. Though I obviously expected to pay him for his work. But the £1k was to be ontop of that!
I have delayed on that and now he has closed my enquiry.
Is the latter a typical situation with an IFA?
Nigel

xylophone

I have sought the advice of two IFA's on a free quote basis.

What kind of pension do you have? Is it a DC pension?

What options does your pension provider offer?