Trivial release catch 22
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Muirhead
Posts: 9 Forumite
I am 60 and recently retired with a DB pension and I am not thinking of adding to this. My problem though is that I also have a pot of just under £5000 from a defined contribution scheme which the provider has said that I can only transfer to another provider who will allow me to take the cash as a lump sum on which tax rules would apply. The problem I have is that I cannot find a low cost provider to do this cost effectively. The closest I got was one company who quoted a flat fee of £1500 no matter if the pot was £5000 or £40000. When I pay tax on this I would be left with buttons!
At first my provider told me that my access to this pot was time lapsed so I have had to fight to get to the point where he would allow this. My problem is how to release it. Can anyone advise on a low cost provider who would conduct transfer for a small fee or advise on a solution
At first my provider told me that my access to this pot was time lapsed so I have had to fight to get to the point where he would allow this. My problem is how to release it. Can anyone advise on a low cost provider who would conduct transfer for a small fee or advise on a solution
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Comments
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Please, please, please do not use the word "release". This smacks of the dodgy people trying to get people to invest all of their money in dodgy places.
If you want to transfer your money to a DIY platform you can try Cavendish, Hargreaves Lansdown or similar? Generally there is no charge for the transfer but you may be charged if you try to get the cash as a single lump sum.
However this is assuming that this is a straightforward personal pension? Not with profits, Guaranteed Annuity Rate or other benefits?0 -
"Time lapsed"? Can you explain?
This is a basic DC pension?
Try ringing Hargreaves Lansdown to discuss any option they could offer?0 -
If you just want it done cheaply go for someone like Virgin. No charges at all from them to transfer money in then take all of the money out.
Hargreaves Lansdown are poorly suited to the short term transfer and take out because of the punitive charges that they make if a pension with them is closed or reduced to under £1,000 within a year of opening.0 -
Hi Xylophone by time lapsed I mean that the provider advised me after leaving that company just ahead of retirement I was given 3 months to transfer to a new provider ( this didn't suit because I already had arrangements in place for a DB scheme)0
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Thanks Jamesd. I take your point about Hargreaves I did not contact them but another potential provider quoted £1500 . I will try Virgin and let you know if I am successful0
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Hi greenglide thanks for your reply. It is a a straightforward pension. Apologies for the terminology! Since my preference would be to transfer in then take the lump sum I would need to find a provider with a low fee with that in mind.0
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look at Charles Stanley Direct as well.The questions that get the best answers are the questions that give most detail....0
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Thanks MG I will0
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Charles Stanley Direct is completely unsuitable because they have a £100 a year charge for using their SIPP, £150 charge for starting drawdown (each benefit crystallisation event), £25 for an irregular income payment and £200 charge for full fund withdrawal within two years of opening the account. Total cost: £475. This is even worse than the HL charges that I described as "punitive".
If you're going to suggest an alternative please remember that the task here is to take a transfer of £5,000 and then withdraw it all and don't suggest places with non-trivial charges for doing that.0 -
Charles Stanley Direct is completely unsuitable because they have a £100 a year charge for using their SIPP, £150 charge for starting drawdown (each benefit crystallisation event), £25 for an irregular income payment and £200 charge for full fund withdrawal within two years of opening the account. Total cost: £475. This is even worse than the HL charges that I described as "punitive".
If you're going to suggest an alternative please remember that the task here is to take a transfer of £5,000 and then withdraw it all and don't suggest places with non-trivial charges for doing that.
It's considerably better than the £1500 that the OP says is the best quote he's had so far.
Can anyone post a link to Snowman's cost comparison s/sheet?The questions that get the best answers are the questions that give most detail....0
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