section 226..do aviva have this correct?

bobbymotors

Thank you dunstonh I will do so.


As far as I am aware, they cannot refuse a transfer to another fund, is that correct?


Once I get that far, what is the name of the fund that I want to transfer to? As when I asked about this last time they just said speak to an IFA!


How long should a transfer take?


Also I am still self employed (as a property landlord) so what % of tax will they deduct from the pot of say £28,000. £7000 is tax free so the taxable amount will be £21,000.


Which will put current year tax 'earnings' at £40,000 so still 20% tax rate.

bmm78

If there are safeguarded benefits (including GARs) valued over £30,000 it is now a legal requirement to obtain advice before transferring away or converting to "flexible benefits". This is covered by the Pension Schemes Act 2015.

Bobbymotors - is the annuity rate quoted on the Aviva plans a "Guaranteed Annuity Rate"? (it wasn't clear from the previous post).

The impression I am getting is that staff at some providers are quoting options for taking benefits from a scheme, when what people are enquiring about is transferring out of the scheme. The problem people will encounter is that the first line they speak to will often be quoting what they have been told to say, and won't necessarily be aware of the relevant legislative or regulatory reasons behind it. This can make it difficult to get to the bottom of a provider's stance and reasoning behind it.

Either way, next time you speak to them I think you should insist on getting clear and specific reasons behind any restrictions they are giving you. What is the basis for them - regulatory from the FCA, legislative via the recent pension Acts, rules relating to that scheme or internal Aviva policy? Once you get the reasoning behind something, it is a lot easier to work out whether it is rubbish or not.

dunstonh

As far as I am aware, they cannot refuse a transfer to another fund, is that correct?

no grounds for blocking a S226 transfer

bobbymotors

there is no guaranteed annuity rate with the aviva 226s, when I asked last year it was just over 4% from memory.


neither of the two Aviva funds are more than £30,000, both are around £28000 - and I only want to transfer one at the moment and decide what to do with the other one next time I fancy a cruise and another car in a few years time!


So the £30,000 thing doesn't apply does it?


also


'Either way, next time you speak to them I think you should insist on getting clear and specific reasons behind any restrictions they are giving you. What is the basis for them - regulatory from the FCA, legislative via the recent pension Acts, rules relating to that scheme or internal Aviva policy? Once you get the reasoning behind something, it is a lot easier to work out whether it is rubbish or not. '


I went into this on my last phone call and it was simply 'your plan says 60, that's that'!

dunstonh

Get them to confirm no GARs in writing, either now or at a later age (some only kick in at 65).

I went into this on my last phone call and it was simply 'your plan says 60, that's that'!

Sounds like someone stuck in 2005 not realising the rules changed in 2006.

If you are lucky, the Aviva MSE support staff will be around in the next day or two and see your thread and give you a contact point.

bobbymotors

well I've just spoken to them and I CAN transfer it if I wish: however I've been told that a final bonus will apply to this policy and that it could / should be about 40% of the fund as long as I wait till 60.


Have asked for that in writing btw!


And I may as well wait till I'm 60, get the final bonus and then transfer it.


plus a lot of the dust will have settled by then and it should be less hectic.

kidmugsy

bobbymotors wrote: »

well I've just spoken to them and I CAN transfer it if I wish: however I've been told that a final bonus will apply to this policy and that it could / should be about 40% of the fund as long as I wait till 60.

I suggest that you check exactly what they mean by "60". Do they mean that you'd have to transfer on your 60th birthday, or within a month after your 60th, or what precisely....? I've seen tales of people losing a lot of money because they didn't get the detail right.

bobbymotors

apparently I can do it at anytime between 60 and 75 but I will check as you advise thank you.

bobbymotors

More help please...


I still want to cash in one of my old 226 policies with Aviva
so I rang them, they said I couldn't
so I said in that case I am happy to transfer the fund to one of your current pension types in order to be able to cash it in.
they said you need financial advice - I said no I don't, it's a 226 policy which does NOT require advice, PLUS the fund is under £30k
she went away and agreed with that
I now have the transfer forms, and the new provider needs to be Aviva.
so I rang them - same old thing you need advice, etc.
in the end I was told I need to set up a new pension with them so that I could transfer the fund across.
so I rang a different Aviva number and they have said I cannot transfer it without advice, even though the law is that I don't need the advice.
I would be happy to transfer the fund to another provider that does not require me to take advice as Aviva are so obstructive.
Anyone any ideas please?7
sorry this is untidy, not easy on an iPhone!
Bob

greenglide

So any of the DIY platforms may suit but they may charge for closing the account when withdrawing the money.

Look at Hargreaves Lansdown (they will charge for closing), Cavendish or use Google.