Urgent Standard Life pension problem

devondiver

I reach age 65 in a couple of months and intend to then survive, for a while at least, on a full state pension topped up by occasional self-employed work and lump sum withdrawals from two tiny pension funds, currently about 20k each. I have been self employed for several years but, for various reasons, I have had virtually no income for the past year and have run up credit card debts of about 25k.
I have decided to withdraw as much cash as I can, within my Personal Allowance limit, from my Standard Life pension and pay off about 14k of credit card debt, reclaiming the tax I pay on this (above the 25% portion tax free) as being within my 2015/16 Personal Allowance.
I first spoke to Standard Life at the beginning of January and was told I needed to book an appointment with one of their ‘consultants’. This was duly done and about a month ago we had ‘the conversation’ regarding lump sum withdrawals (my stated primary interest) plus the other options. I was advised to give all options due consideration before re-contacting them, upon which they would implement my decision. This I duly did, including consulting the Money Advice Service, Pension Wise (which, as an aside, are not actually able to offer ‘advice’ – only ‘guidance’, and whose only ‘guidance’ was that I should consider an IVA and talk to PayPlan i.e. default on the card debts and preserve my pensions!)
However – on speaking with Standard Life today I was told that I need again to talk to a consultant, that the earliest appointment for this was a further month hence and that it would then take a further two to three weeks to get the money into my account! By which time we will be into the next tax year!
Despite me remonstrating severely (for me) and pointing out that this was simply unacceptable I was told that there was absolutely nothing that could be done as they were ‘rather stretched’.
So my questions are:
1) Am I correct about the tax situation i.e. that if the cash lump sum does not go into my bank account before April 5th I will be unable to claim it as part of my 2015/16 Personal Allowance;
2) What is the best thing I can do regarding complaining to/about Standard Life especially as I was led to believe during earlier conversations that once I had reached a decision (on which course to take) it would be enacted promptly;
3) Are there any fundamental flaws in the rationale outlined above which may have escaped me.
Thanks for reading this, and in advance to any pensions/tax gurus who might reply.
Paul

xylophone

Is it possible to transfer both pensions into an HL SIPP within this tax year?

You could then take a lump sum of £10,000 and up to £10,600 as income in this tax year and enough to fully clear the credit card debt in the next?

devondiver

Thanks xylo but unless I can overcome Standard Life's blocking move the answer has to be - no. My other policy, with Scottish Life, has a guaranteed annuity rate so I intend to hang on to that if I can, and reduce the remainder of the credit cards over time.

xylophone

unless I can overcome Standard Life's blocking move

They haven't blocked a transfer? You could try a telephone call to HL?

mgdavid

what you may not realise is that when you initiate a transfer, for example to a SIPP, it's the SIPP company that do all the work in 'pulling' the money from Standard Life. Just over a year ago I transferred a stakeholder from SL to my SIPP with Charles Stanley, it took just over 1 month and that was across Christmas and New Year (and I wasn't in a particular hurry so was a bit slow with my side of the paperwork).
Once you know where you want to transfer to, just giving notice to SL of your intention should be sufficient, and the new provider will do the rest. (unless I'm missing something vital!).

brewerdave

I transferred a pension from SL to Hargreaves last year and it was all done electronically in a couple of weeks.

dunstonh

Just over a year ago I transferred a stakeholder from SL to my SIPP with Charles Stanley, it took just over 1 month and that was across Christmas and New Year (and I wasn't in a particular hurry so was a bit slow with my side of the paperwork).

I am no fan of standard life but I find their transfers out from stakeholders are really quick and tend to take 2-3 days. It helps to have all paperwork done in advance.

If both schemes use the options system then you are talking a matter of days. if one scheme uses the options system but the other doesnt then its a manual based postal system with forms needing to be signed from both sides. That turns it into weeks.

Standard Life dont need discharge forms. They just need something from you in writing saying you want to transfer out. We always do a memo/letter template signed by the client to that affect and send it to the new provider with the applications and they forward it on to SL with their list of questions.

devondiver

Replies are appreciated but transfers are not the issue here. No-one has answered my questions. I have lodged a complaint with SL and received an unhelpful reply which I shall now follow up. Will keep you posted - if anyone's interested.

xylophone

You have a pension valued at £20,000.

It is with Standard Life.

You would like to access the policy within this tax year so as to be able to take the tax free Pension Commencement Lump Sum (£5000) and as much of the balance in cash as will ensure that you can use up your Personal Allowance in the current tax year.

Standard Life are being dilatory and it would appear that their time constraints are such that you will not be able to achieve the above within this tax year.

However, if you were able to organise a transfer out within the next couple of weeks, you would be able to achieve your objective?

dunstonh

The reason Standard Life are using their "consultants" is that your existing plan does not support the transaction you want to do. You have then decided to employ them to set up a new plan to transfer the old one into. Rather than using a third party (such as an IFA or a direct to consumer provider).

Their sales team are slow and there is no reason to use them (product isnt great, service isnt great and cost isnt great). So, use someone else.

mgdavid

devondiver wrote: »

Replies are appreciated but transfers are not the issue here. No-one has answered my questions. I have lodged a complaint with SL and received an unhelpful reply which I shall now follow up. Will keep you posted - if anyone's interested.

your Qs:

1/ - yes
2/ - you don't have the time to waste on this
3/ - see post #10

so you need to transfer.