withdrawing from drawdown pension can any one help?

della1234

Great thanks, fingers crossed.

I cant remember why I changed! just went off what FA suggested, my memory is bad and it confuses me!

It was about 3 years ago.

Good_bad_and_ugly

Ask them for a copy of their suitability report. How much did it cost you?

addedvaluebob

Looks like an old fashioned churn to generate an adviser fee. Get the suitability report from the transfer and look for a direct comparison between Standard Life staying where it was and the proposed (now completed) transfer to Met Life allowing for costs and fees. £76,000 is low to recommend a drawdown contract and be cost effective advice.

Unless the figures really stack up in your favour you should consider complaining to the IFA. In very simple terms would your money be worth more if you had left it with Standard Life

dunstonh

The Met Life contract has Capital Security built into it. Personally, not a fan but it was aimed at those looking to lock in growth with limited downside.

Good_bad_and_ugly

Risk reduction through higher cost = self fulfilling prophecy? I don't know if you managed to see this, I wonder if this possibility was documented?

http://citywire.co.uk/new-model-adviser/news/metlife-cuts-guaranteed-drawdown-rates/a798806

If a client was that risk averse, the IFA should have simply discussed and documented advocating reducing the existing SL fund profile risk exposure.

bmm78

addedvaluebob wrote: »

Looks like an old fashioned churn to generate an adviser fee. Get the suitability report from the transfer and look for a direct comparison between Standard Life staying where it was and the proposed (now completed) transfer to Met Life allowing for costs and fees. £76,000 is low to recommend a drawdown contract and be cost effective advice.

Unless the figures really stack up in your favour you should consider complaining to the IFA. In very simple terms would your money be worth more if you had left it with Standard Life

Assuming that it's a transfer from Standard Life to the MetLife drawdown contract, it's unlkely to have been based on costs and fees.

The premise would have been to move into drawdown to access tax free cash, but with underlying guarantees. Like dunstonh I'm not a huge fan of the MetLife contract, but in principle, there is nothing to be alarmed about. I think people should wait for more info before talking about churning and complaints.

You'd expect the report to clearly explain why it was appropriate to access tax free cash rather than any other savings, and also explain the features and drawbacks of the contract (cost being an obvious one for the Guaranteed Drawdown product).

We also need to establish what the product actually is, as MetLife also used to offer a Fixed Term Annuity (written under drawdown rules).

della1234

It only went into drawdown last year when I claimed 25% tax free lump sum.

So do you think I can still have the first 25% tax free?

thanks

jem16

della1234 wrote: »

So do you think I can still have the first 25% tax free?

No - as has already been said you have had your 25% tax free lump sum. All withdrawals will now be taxed.

philwal_2

If you have already taken 25% tax free you cannot then claim a further 25% tax free on further withdrawals. All future withdrawals will be taxed at your marginal rate.

della1234

Even though I found this on the gov.uk website? :-(


"Cash from a defined contribution pension scheme
You may be able to withdraw cash directly from your pension pot if you’re in a defined contribution pension scheme. You can either withdraw:

your whole pension pot - 25% is tax free
smaller cash sums - 25% of each sum is tax free
These are called ‘uncrystallised funds pension lump sums’ (UFPLS)."