S32 with Pru

YaniB_2

Hi Guys.


Need some advice and clarification. I have an S32 plan with the pru when I transferred out of my company scheme on taking redundancy. This was way back in 1992. I am now 55 years old. My plan has a GMP of 6800 at age 65.


A number of years back I received a letter from the Pru saying I may have been ill advised to leave my old scheme. They would investigate. After some time I received a further £17000 due to mis selling. My original transfer from my company was around £12500. This increased the pot somewhat.


On talking to the Pru recently they tell me the fund value is £96000 in total. The value of the redress amount within that figure is now £40000. I have been told by the girl on the phone that the Pru cannot use any of the redress fund to purchase my GMP.
Can anyone tell me what I will be able to do with that part of the fund. Could I take 25% at age 65 and transfer the rest to a drawdown ?


Thanks
YaniB

dunstonh

The redress should be an "excess" amount and it broadly similar to having the money in a personal pension. It can be used for providing additional pension benefits.

YaniB_2

Thanks Dunstonh. That's kind of what I thought.
Just one other question.
Because the redress amount is in an S32 plan, could I be forced into using it to purchase an annuity rather than moving it into a drawdown plan. Not too sure of the rules of these plans t be honest.

xylophone

http://www.pruadviser.co.uk/content/knowledge/technical-centre/section_32/

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

dunstonh

Because the redress amount is in an S32 plan, could I be forced into using it to purchase an annuity rather than moving it into a drawdown plan. Not too sure of the rules of these plans t be honest.

There are no plans that force you into an annuity. Even the GMP part of the S32 can be moved into drawdown.