Pension - Flexible Financial Advisor Help PLEASE

Wilfora

I have a pension pot of £54k with Royal London/CIS and would like to take this now as lump sums, starting with the 25% tax free withdrawal. I am 55 and have significant property investments which are my main pension/income so do not need this pension to be invested any longer. My hope is I can withdraw it over the next 4-5 years until it has completely gone. Royal London insist I get an Independent Financial Advisor to fill in their ‘Financial Advice Confirmation Form’ and a reputable IFA has quoted 4% + for a full financial audit and pension advice (which is £2k+). I do not require this but am struggling to find anyone to give me a cut-down service at a reduced fee and who will sign the form. Without the form filled in I am unable to access my pension. Has anyone found an understanding and flexible Financial Advisor to help them through a similar process?

dunstonh

would like to take this now as lump sums, starting with the 25% tax free withdrawal.

That means you are after income drawdown.

I am 55 and have significant property investments which are my main pension/income so do not need this pension to be invested any longer.

Why not?

Royal London insist I get an Independent Financial Advisor to fill in their ‘Financial Advice Confirmation Form’

First of all, the ex CIS policies do not cater for drawdown. So, they can only transfer out to do what you want.
Secondly, this is only required if there are safeguarded benefits. A lot of old CIS plans do have guaranteed annuity rates.

and a reputable IFA has quoted 4% + for a full financial audit and pension advice (which is £2k+).

£2000 seems reasonable.

I do not require this but am struggling to find anyone to give me a cut-down service at a reduced fee and who will sign the form.

How do you propose that it be cut down yet allow the adviser to still comply with their legal requirements?

kidmugsy

Why not follow d's hint and look to see whether there is guaranteed annuity rate. Then tell us what it is and from which age it is guaranteed.

xylophone

http://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/

Any safeguarded benefits as above? If so, there is the advice requirement.

Otherwise, it might be possible to ask a new provider to organise a transfer out and then go into drawdown.

Example

http://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+SIP&gclid=CNvYstnjo9ICFSEG0wodXWIPAQ

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Wilfora

dunstonh wrote: »

That means you are after income drawdown.


Why not?


First of all, the ex CIS policies do not cater for drawdown. So, they can only transfer out to do what you want.
Secondly, this is only required if there are safeguarded benefits. A lot of old CIS plans do have guaranteed annuity rates.


£2000 seems reasonable.



How do you propose that it be cut down yet allow the adviser to still comply with their legal requirements?

Thank you to all three correspondents above.

In response to your questions/comments:

1. My CIS/Royal London pension has a Guaranteed Annuity Rate. I have very little information about what I will receive and when so will check with Royal London.

2. If I leave my pension pot until the date I retire - in 5 years time at 60 - does the situation change? Do I still need an Independent Financial Advisor if I want to take the money out in instalments then? Is 2022 when the pension reaches its full maturity? So by taking it out now I'm potentially losing a significant amount of money?

3. Yes £2k seems reasonable for the work the advisor suggested, my query is that I dont need all that. I know what I want to do. OR at least I think I do. Perhaps there is more to this than I have been told so far? I do not want to reinvest the money and receive more with another provider. I chose CIS 25 years ago for ethical/political reasons.

4. Yes I will receive a full state pension. I've checked online.

5. My current property investment fulfills my longterm pension requirement. I always considered this smaller pension pot as a 'savings plan' and have plans to utilitse it.

Any other thoughts/comments/advice are very gratefully received. Thanks again.

dunstonh

2. If I leave my pension pot until the date I retire - in 5 years time at 60 - does the situation change? Do I still need an Independent Financial Advisor if I want to take the money out in instalments then? Is 2022 when the pension reaches its full maturity? So by taking it out now I'm potentially losing a significant amount of money?

You will need an adviser whenever you use an option that is not utilising the annuity.

3. Yes £2k seems reasonable for the work the advisor suggested, my query is that I dont need all that. I know what I want to do. OR at least I think I do. Perhaps there is more to this than I have been told so far? I do not want to reinvest the money and receive more with another provider. I chose CIS 25 years ago for ethical/political reasons.

Whilst you do not want it, the regulator expects the adviser to carry out their job. That is advice. You want someone to press a button. That isnt what an adviser does. They have to analyse what you want and how it fits with your situation and make sure it is affordable and justifiable and suitable. The adviser then carries a lifetime of liability on that advice. Your plans could fail and 30 years from now, you could complain to the adviser, who could be retired or dead and his/her spouse may have to consider your complaint in a world of moving goalposts.

It is a hot potato with the regulator and the FOS more often than not sides with the consumer when people have spent all their pot and end up short of money. So, it comes with a high risk to the adviser. Part of the cost is the risk.

Wilfora

dunstonh wrote: »

You will need an adviser whenever you use an option that is not utilising the annuity.


Whilst you do not want it, the regulator expects the adviser to carry out their job. That is advice. You want someone to press a button. That isnt what an adviser does. They have to analyse what you want and how it fits with your situation and make sure it is affordable and justifiable and suitable. The adviser then carries a lifetime of liability on that advice. Your plans could fail and 30 years from now, you could complain to the adviser, who could be retired or dead and his/her spouse may have to consider your complaint in a world of moving goalposts.

It is a hot potato with the regulator and the FOS more often than not sides with the consumer when people have spent all their pot and end up short of money. So, it comes with a high risk to the adviser. Part of the cost is the risk.

I see.... so what if the advisor disagrees with what I want to do? Does Royal London go with what they advise or what I want to do even if its against the advisor's advice? I have to pay for this advice but do I have to take it? I guess is what I'm asking? How does the law stand on this one?

dunstonh

I see.... so what if the advisor disagrees with what I want to do?

A quite possible outcome. Indeed, if you are taking the money out to buy a property, it could well be that as the pension is likely to beat the property net of tax.

Some advisers will allow you to overrule their advice. Some will not. Its one of the questions you need to ask before you engage them.

Does Royal London go with what they advise or what I want to do even if its against the advisor's advice?

You are only required to get advice. You do not need to follow it. RL just need the adviser to sign the forms to say you have received advice.