Transfer to Flexi-Access pension

SandLake

I currently have a pension which is not eligible for flexible drawdown without a chargeable transfer to a flexible drawdown product like a SIPP, could I transfer it (transfers are free) to another company who would then give me free flexible drawdown? Any recommendations?

kidmugsy

How big's the fund? How quickly do you plan to draw it down?

mgdavid

Is the current pension a DB (salarty-related) one by any chance?

jamesd

Why isn't it eligible for flexible drawdown? Is it defined benefit, like final or average salary? Is it because it's a workplace pension and you're still employed there? It is because the provider of the pension doesn't offer flexible drawdown, just the older options like buying an annuity?

SandLake

Sorry posted in a bit of a rush. It is a DC with Aviva valued at £54K from an employer I am no longer with. As I am about to hit 55 I am considering flexible drawdown but Aviva say it is not eligible. I do have an AVC (37K) with Friends Life which I can take from 55 (next week) and they are happy to allow flexible access, even mentioned UFPLS and they would also be happy to consolidate my Aviva pots and can't see any reason why they couldn't come under UFPLS as well!

xylophone

from an employer I am no longer with. As I am about to hit 55 I am considering flexible drawdown but Aviva say it is not eligible.

Is this a S32 policy?

xylophone

i

t is because the provider of the pension doesn't offer flexible drawdown, just the older options like buying an annuity?

http://www.aviva.co.uk/savings-and-retirement/approaching-retirement/how-do-i-take-money-from-my-pension-fund/

It would seem to be some restriction in the OP's particular policy?

Might be a S32.

SandLake

Never heard of a S32 policies so I am going to say no

jamesd

Best to ask them to tell you specifically why it's not possible. The most likely answers is something along the lines of "we don't offer that choice on this particular product". Or the alternative that a dishonest provider might use "It's not allowed for this type of product" and you protect against that by asking what it is about that product that means it's not allowed, is it just your rule or is it the law?

Then you tell us the answers and we can tell you whether they make sense.