Aviva says they don't know how to implement the new pension rules???

dunroving

jem16 wrote: »

I wonder why an Investment Bond was used?



Sorry - don't know where I made that up from!

I'm pretty sure she was advised to do this by a financial advisor many years ago. I haven't had conversations with her about the whys and wherefores of how she ended up half-invested in a personal pension and half in this investment bond, with two different companies.

I do know she was smart enough to realise many years ago that she needed to plan for retirement as she was self-employed and didn't have a work pension. However, things financial make her head explode so she is a financial advisor's dream - she just does as she is told by anyone who is a supposed financial expert.

I am trying to help her through her transition to retirement by giving her guidance and information with the explicit caveat that she has to make the decisions herself, and I am not giving her expert advice, just helping her to gather the necessary information.

Over the last 5 years or so both the ASegon bond and Aviva pension have done similarly well (both currently at about £90k), presumable buoyed by the same market sentiment and recovery since the debacle of 2008.

jem16

dunroving wrote: »

I'm pretty sure she was advised to do this by a financial advisor many years ago.

If it was advised then I'm sure there would have been a very good reason for it so wouldn't worry about it.

dunroving

jem16 wrote: »

If it was advised then I'm sure there would have been a very good reason for it so wouldn't worry about it.

If the tax situation fits my understanding of what I am reading here, and considering what I could see in terms of the underlying performance over the years, I think it will work out to have been good for her.

jamesd

I'll probably work out very well for her because she can time her income sources to avoid paying any income tax. Taxable income from the pension to the personal allowance and topping that up with untaxed or tax free from other sources like the investment bond or a pension tax free lump sum reinvested into an ISA.