Friend Life Fiasco

mjnet

I am trying to withdraw 25% of my pension tax free. Friends Life have been giving me the most ridiculous run around. I have finally (after eight months), been told I have to transfer my funds to a Flexi Access Drawdown, but I have to "shop around" for the best one. I don't know where to start!

Can you please advise me which is the best company to go to for this?

Friends Life have mentioned Aviva. I just want my 25% (which only amounts to about £5k) asap, and don't want to fill out any more forms, or make phone calls to Friends Life where I'm in a queue for thirty minutes and have to constantly chase them and continually given misinformation.

Thank you

kidmugsy

For a total fund of £20k, a Hargreaves Lansdown SIPP might suit. You'll find their phone service a revelation after your woes.

Delete33

Friends Life are now with Aviva, probably why they mentioned Aviva.

dunstonh

I am trying to withdraw 25% of my pension tax free.

Right. That means you want to crystallise the pension using income drawdown. However, most, if not all, of the Friends Life plans do not support income drawdown.

I have finally (after eight months), been told I have to transfer my funds to a Flexi Access Drawdown, but I have to "shop around" for the best one. I don't know where to start!

That is correct as you want a feature not offered by them.

Can you please advise me which is the best company to go to for this?

That is a regulated activity and against board rules.

Friends Life have mentioned Aviva. I just want my 25% (which only amounts to about £5k) asap, and don't want to fill out any more forms, or make phone calls to Friends Life where I'm in a queue for thirty minutes and have to constantly chase them and continually given misinformation.

Aviva owns Friends Life. Aviva have drawdown plans. Whether you choose Aviva or another provider, you are going to have to fill out forms to transfer your pension to that new provider.

xylophone

A family member found the process of transferring a small DC pension to a HL SIPP quite painless - this route might suit you.

There is plenty of information on the site and they are clear and helpful on the phone.

AnotherJoe

I am pretty sure that if you put money in a HL SIPP and take it out straight away there will be a charge. Probably same for most. So you might want to double check the charges and you might need to leave it there for a year to avoid a disproportionate charge.

zagfles

xylophone wrote: »

A family member found the process of transferring a small DC pension to a HL SIPP quite painless - this route might suit you.

There is plenty of information on the site and they are clear and helpful on the phone.

Also I think they contact the old provider so no more hassle trying to deal with them

zagfles

AnotherJoe wrote: »

I am pretty sure that if you put money in a HL SIPP and take it out straight away there will be a charge. Probably same for most. So you might want to double check the charges and you might need to leave it there for a year to avoid a disproportionate charge.

Yes if you take it all straight out there's quite a high closure fee, but it looks like OP only wants the 25% tax free lump sum out, presumably he's happy to leave the rest in the pension. He'd need to decide what to invest it in. I think if he keeps the rest in for at least a year this high closure fee doesn't apply.

AnotherJoe

zagfles wrote: »

Yes if you take it all straight out there's quite a high closure fee, but it looks like OP only wants the 25% tax free lump sum out, presumably he's happy to leave the rest in the pension. He'd need to decide what to invest it in. I think if he keeps the rest in for at least a year this high closure fee doesn't apply.

You're right I missed that. Sorry OP so that would work then.

mgdavid

zagfles wrote: »

Yes if you take it all straight out there's quite a high closure fee, but it looks like OP only wants the 25% tax free lump sum out, presumably he's happy to leave the rest in the pension. He'd need to decide what to invest it in. I think if he keeps the rest in for at least a year this high closure fee doesn't apply.

Not worth investing if he wants to draw it all down over a couple of years, with inflation being so low might as well leave in cash?

atush

So do you have other pensions? Or will you live on 15K plus state pension in retirement?

If so, you might consider cutting back hard on spending now.