AVIVA say I must use an IFA

jem16

agarnett wrote: »

And because 14 years is "many years ago" to a live-for-today / keep-on-trucking financial adviser, then stakeholder pensions may be a bit boring to have to discuss at anything up to the 14 years that may have passed since they were first sold - never mind that some people might expect a pension product to be intended for a long haul of perhaps double that distance :rotfl:

Will the stakeholder pension still function as a pension and allow a retirement income?

agarnett

jem16 wrote: »

Will the stakeholder pension still function as a pension and allow a retirement income?

I haven't a clue, because I don't have one, but your question seems to have a sarcastic bent, or hidden meaning, so perhaps you as a regular FA type hereabouts, jem16, might enlighten us with just what it is you are trying to say?

iwannbejockmctavish

It seems this thread has well and truly been hijacked in order for others to play out ongoing squabbles and differences of opinions. What helpful comments have been offered, I am very grateful for, my next step is to kick Aviva into touch via an IFA and take my fund elsewhere. Hopefully the ongoing discussions between protagonists can continue as you wish, enjoy!!

agarnett

Sorry, iwannbejockmctavish. You are right, wherever I wade in, it seems there's a group who just don't want to hear and don't want MSE'ers generally to hear so they seek to smother my bald warnings.

As for using an IFA to get yourself shot of Aviva, it isn't necessary. You mentioned Hargreaves Lansdown - they'll take the transfer value into a SIPP and you can take 25% tax free from there plus subsequently any extra "new drawdown" you fancy against your normal marginal rates of income tax.

I don't think you need consider paying an IFA for something as modest as this sounds - you said the fund value was over £50K, but unless it is well over £100K, if your prime purpose remains just extracting part of the 25% taxfree bit, and you have no other pension, and just want afterwards to optimise what's left, then you might just kick off a new SIPP online and get them to move the thing across. If it is some kind of managed investment plan you want going forward, you might find H-L can offer an enhanced SIPP service for that. Linton has mentioned one or two others you might also look at online.

It seems Aviva were only insisting on an IFA if you wanted to take the 25% and start your pension with them. They can't currently insist on you using an IFA to transfer it to another provider. They can't stop you initiating it yourself with someone like H-L. Then you can do the 25% TFLS from there. As Linton probably implied earlier, it is pretty straightforward to transfer to someone like H-L. They'll tell you all you need to be told to enable them to kick off and manage the transfer for you, and they will keep you posted.

I shall probably move my Aviva WP pension policy to H-L, but you have read, because it is WP I need to check a few more angles first. Due to a brand new style of terminal bonus that I only qualify for because I obstinately stuck with the original contract five years ago when they pestered me and tried to bribe me to change it, the transfer value has already gone up nearly 10% since I started on the transfer idea 3 months ago! I have a grudging feeling that because they are hiding the true performance in the WP funds that the nearly 10% could easily become nearly 20% if I wait another year or two. But that's with-profits, and you've had your fill of that from me!

Good luck!

atush

Well done Jock, although it hasn't been hijacked by more than one person, just by he who will not be named.

When he slags someone off, they have the right to reply (except me as I no longer suffer alf's rants and insults lol)

And yes, transfer is your answer. Eventualy they will pull their finger out and provide a product to suit you, but at only a month from DDay, and the govt springing this on them, they have not had a great deal of time to do so. Maybe they will work faster once the money starts flowing out of their coffers? I have nearly 300K in their stable, but OH and I aren't retired yet so time will tell.

I expect to transfer.

jem16

agarnett wrote: »

but your question seems to have a sarcastic bent, or hidden meaning,

No sarcastic bent nor hidden meaning to my question. It was just a simple question.

jem16

atush wrote: »

Eventualy they will pull their finger out and provide a product to suit you, but at only a month from DDay, and the govt springing this on them, they have not had a great deal of time to do so.

It sounds like Aviva does have a product to suit the OP - ie a Drawdown product as opposed to a stakeholder product - which they could move him to.

However as it's classed as higher risk, they expect the OP to receive advice from an IFA before they would move him onto this. This does seem a sensible approach.

Perhaps they could have explained that he could transfer without the need of advice but I suppose it all depends on how the conversation went between Aviva and the OP.

agarnett

jem16 wrote: »

Will the stakeholder pension still function as a pension and allow a retirement income?

Apologies that I didn't interpret your tone correctly. Can you elaborate ? Trying hard to avoid stating the obvious, the stakeholder pension was sold to function as a pension product and naturally a pension product is designed to provide a retirement income. So why wouldn't it?

It sounds like Aviva does have a product to suit the OP - ie a Drawdown product as opposed to a stakeholder product - which they could move him to.

However as it's classed as higher risk, they expect the OP to receive advice from an IFA before they would move him onto this. This does seem a sensible approach.

I honestly am pretty sick of hearing that a provider cannot or simply chooses not to offer advice on its own products (due to risk - to them!).

And you are talking about a company that deliberately tied FSA into knots with its avant garde provision of thousands of units of non-advice life assurance product to the likes of Barclays to flog in its branches through totally unqualified commission-paid staff.

Perhaps they could have explained that he could transfer without the need of advice but I suppose it all depends on how the conversation went between Aviva and the OP.

It probably went along the lines of "you need to consult your financial adviser as we are not allowed to give advice".

And posters on these forums love to repeat such nonsense as if it it was always thus - I mean how can a major provider constantly designing novel products which advisers say customers really should be into not be the best person to describe how the bloody things work??

jem16

agarnett wrote: »

Trying hard to avoid stating the obvious, the stakeholder pension was sold to function as a pension product and naturally a pension product is designed to provide a retirement income. So why wouldn't it?

Well that's what I thought as well. You seem to have been suggesting that stakeholder didn't do that and after 14 years it wasn't doing what it said on the tin just because it isn't modern.

I honestly am pretty sick of hearing that a provider cannot or simply chooses not to offer advice on its own products (due to risk - to them!).

I don't think Aviva has said that they would not give out information on its own product. What they are saying is that it cannot give advice to the OP that this is the correct product for him.

And posters on these forums love to repeat such nonsense as if it it was always thus - I mean how can a major provider constantly designing novel products which advisers say customers really should be into not be the best person to describe how the bloody things work??

I don't recall any adviser nor poster on these forums saying that a Drawdown product is suitable for all. Depending on the size of the pot and an individual's circumstances, an annuity may still be preferable. Some people will know what they want and others will need advice.

agarnett

Ah, I see you enjoy playing games, jem16, crediting me with the opposite of what I have actually said, is that it?

You said Aviva has said that they would not give out information on its own product. How do you know what Aviva has said ? Oh sorry, you didn't say that, did you? Good game though