Our pensions company says we need financial advise before we can have the full pot

jen300

Can any one help please. My husband who is 70 has a policy with Prudential. We are quite comfortable both having an occupational pensions plus state pensions and downsized to help our lifestyle. We know about the tax situation and our property is paid for. My husband has a policy with Prudential and after discussion we have decided to take it all to pay off some debts and do some improvements to our property. The remained will be invested so we can have holidays etc. He keeps getting conflicting advise from Prudential. The latest is that he has to have a form filled in by a financial advisor before he can take the funds as it is over £30k. He was told that this is a new law that came in last week!

jamesd

The new law that applies from 6 April 2015 says that financial advice is not required for transfers out of defined benefit pensions with a transfer value of up to £30,000. It does not apply to personal pensions of any size, just to the defined benefit types like final or average salary.

dunstonh

in addition to what James has said, if there are guarantees on the plan, such as a guaranteed annuity rate or GMP then financial advice is required where these safeguarded benefits are worth £30,000 or more.

It is a safety mechanism to prevent people giving up valuable guarantees or other benefits which they are probably not aware of but would be lost and not able to recover.

jen300

Ah well it looks as if we'll have to see a financial advisor if and when the Prudential deem to send us the form - one day maybe.

kidmugsy

jen300 wrote: »

Ah well it looks as if we'll have to see a financial advisor if and when the Prudential deem to send us the form - one day maybe.

I wouldn't waste your money on an advisor. I suggest that you ring the Pru and ask for complaints/compliance. There you might find someone who knows enough not to spin you fairy tales about your needing to pay for an advisor.


What sort of policy is it (exact name, please)?

jen300

The plan is a conventional with profits plan. Does that help?

kidmugsy

jen300 wrote: »

The plan is a conventional with profits plan. Does that help?

Is it some sort of pension plan? Or a plain insurance savings plan. The exact name would help.

stubtoe

The point is that they may HAVE to take advice as per dunstonh's comments IF the plan contains safeguarded benefits - Google for FCA paper CP15-07 (Proposed Changes to our Pension Transfer Rules).

jen300

Sorry to be so thick but this was a surprise pension that he didn't know he had! It is a Personal pension plan with protected benefits.

jem16

jen300 wrote: »

Sorry to be so thick but this was a surprise pension that he didn't know he had! It is a Personal pension plan with protected benefits.

Have you asked the Prudential if there's any guaranteed annuity rates with it? What exactly are the protected benefits?

It might be worth phoning Prudential and asking them exactly what your pension plan is called and if there are any guarantees with it.

sandsy

jen300 wrote: »

Sorry to be so thick but this was a surprise pension that he didn't know he had! It is a Personal pension plan with protected benefits.

What sort of protected benefits? These protected benefits could be the reason why advice is required.