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

xylophone

This is not a S32 or a plan with a guaranteed annuity rate? This would require advice if the value is over £30,000.

Otherwise, is it possible that the clerk on the telephone saw the words "protected rights" and drew the wrong conclusions?

Protected rights arose when a person contracted out of SERPS/S2P into a private pension arrangement. did your husband do this (perhaps in the late eighties)?

"Protected rights" are no more - they were converted to ordinary pension rights.

If the above is the case, there should not be a need for an adviser?

stubtoe

xylophone wrote: »

This is not a S32 or a plan with a guaranteed annuity rate? This would require advice if the value is over £30,000.

Otherwise, is it possible that the clerk on the telephone saw the words "protected rights" and drew the wrong conclusions?

Protected rights arose when a person contracted out of SERPS/S2P into a private pension arrangement. did your husband do this (perhaps in the late eighties)?

"Protected rights" are no more - they were converted to ordinary pension rights.

If the above is the case, there should not be a need for an adviser?

Good points, but all we're doing now is guessing. OP simply needs to ring up Prudential and ask the exact reason why they believe advice is required in this case i.e. what is the policy benefit that they are deeming a 'safeguarded benefit' under the new rules.

redux

Aside from the things mentioned so far, is it also worth considering whether taking this all at once carries him into the 40% tax bracket with the other pensions?

If so it might be worth spreading this withdrawal over 2 or 3 years.

BiffaBeercan

My wife is trying to cash out an old pension that she has with Royal London, the value of it is only around £5000.
The pension is a personal pension and is not a defined benefit scheme.
The company, Key-Wealth, has written to her asking for £500 with the following text in the message, I believe they're trying it on and if my wife protests they could drop it:

The only issue we have is that for Royal London to action this the completed form should be returned together with a covering letter from us as the Adviser confirming you have been made aware of the Regulatory advice and risk warnings connected to taking their pension fund as a lump sum. This would therefore constitute us opening an advice process and is subject to our minimum fees as per the attached agreement.

This would usually be £750 however as an existing client we could discount this to £500 – I realise though that this is still not insignificant in relation to the plan value.

All advice will be gratefully accepted

xylophone

Do you have to submit the form to RL through this firm?

BiffaBeercan

I'm beginning to think they're just trying it on now.

We've been in touch with CAB and they recommend speaking direct to Royal London.

jen300

Thanks for all your help. We have just talked it through Prudential and they are sending the forms so hopefully that will be that

jem16

jen300 wrote: »

Thanks for all your help. We have just talked it through Prudential and they are sending the forms so hopefully that will be that

So what did they actually say about the pension? Are there guarantees attached?

It could be helpful for others reading to know why they are insisting you need advice.

BiffaBeercan

xylophone wrote: »

Do you have to submit the form to RL through this firm?

We've spoken to Royal London on the phone and there's no requirement at all for a covering letter so it looks like Key-Wealth are a bunch of chancers in the mould of PPI scammers!

jen300

Sorry we are still digesting this - its so confusing. We have spoken to a financial advisor who has been helpful. Apparently we have to transfer the funds elsewhere as the conditions were such that we cannot draw down money on this fund. That's why we need a financial advisor. So we are finding out fees!