Friend Life Fiasco

georgewn.1

Hi , I have a small private pension with friends life and they do not have a drawdown option.
They are only offering three options , 1 withdraw the lot, 2 buy an annuity or 3 take a lump sum and use the rest for an annuity.
I dont like any of those options as I want to draw on it as and when needed, the pot in question is only £25000.
My question is ,If I transfer it to a SIPP with a company like HL and leave it there as cash to draw on would it be classed as savings for any future benefits I might claim such as housing benefit ?
This is my first post on this subject and my first foray into this complex world so please be kind if this has been put in the wrong place or has been asked before.

dunstonh

They are only offering three options , 1 withdraw the lot, 2 buy an annuity or 3 take a lump sum and use the rest for an annuity.

4 - transfer to another provider for drawdown
5 - transfer to another provider to leave uncrystalised
6 - defer
7 - use the open market option

My question is ,If I transfer it to a SIPP with a company like HL and leave it there as cash to draw on would it be classed as savings for any future benefits I might claim such as housing benefit ?

if you are of retirement age, then means tested benefits can take into account the income a pension would provide.

jamesd

georgewn.1 wrote: »

They are only offering three options , 1 withdraw the lot, 2 buy an annuity or 3 take a lump sum and use the rest for an annuity.

That's just because those are the only product types that they offer. You also have a legal right to transfer so just give HL a call and you'll be shocked at how easy they make a transfer to them.

georgewn.1 wrote: »

If I transfer it to a SIPP with a company like HL and leave it there as cash to draw on would it be classed as savings for any future benefits I might claim such as housing benefit ?

See DWP benefits and pension freedom. If you are before Pension Credit age it will be ignored unless you take something out, when the bits you take out will be considered. from Pension Credit Age onwards it isn't ignored.