Pension Pot

Pixbach

I have a pension pot of around £500,000,through the electrical supply industry, that I have been paying into for 29 years.I am aware that I cannot cash in until I am 55 for a monthly income,I am 46 at the moment.Can I withdraw this pot and invest it elsewhere for upto 10 years,if so what would be my best bet ?

dunstonh

.I am aware that I cannot cash in until I am 55

Any thought of cashing that in would make you a nut case.

Can I withdraw this pot and invest it elsewhere for upto 10 years,

yes and no. You cannot withdraw the pension. However, you can transfer it, subject to IFA advice and invest it if its a sensible thing to do.

if so what would be my best bet ?

If you cant answer that then its probably best that you dont.

ewaste

Is the pension Defined Benefit or Defined Contribution?

bostonerimus

You need to tell us a lot more. Please describe your pension in detail.

xylophone

through the electrical supply industry

A Defined Benefit pension?

On these lines?

http://www.enwl.co.uk/docs/ENWL-Pensions/db-member-guide

Do you have your own section's booklet?

Have you read it and do you understand your benefits?

https://www.moneyadviceservice.org.uk/en/articles/transferring-out-of-a-defined-benefit-pension-scheme

https://www.royallondon.com/Global/documents/GoodWithYourMoney/COMPANY-PENSIONS-FIVE-REASONS-TO-TRANSFER-OUT-AND-FIVE-REASONS-NOT-TO.pdf

K_E_A

Hi there

I'm in a Defined Benefit Pension Scheme in the electricity industry. I'm 55 and waiting for my transfer quote. It's my intention to retire early on receipt and work part-time for myself.

My pension scheme administrators have advised they only need the official confirmation (letter of authority etc) that I have consulted with a Financial Advisor and even if a transfer is not recommended, if it's still my express wish to do so, I can do (once I've given 60 days notice to leave the scheme). But the majority of Financial Advisors I've enquired with are insisting they will only work with me if they do make a recommendation and that more often than not, they will always advise against it. (Hargreaves Landsdown for example). Some offer initial advise for free, others charge a lot.

So I'm looking for recommendations for companies/IFA's who do not insist on a positive recommendation to transfer. Not looking to make rash decisions either, but also not looking to waste time and money with those who won't/can't accommodate this from the outset.

Many thanks for any advice, much appreciated

sandsy

Whilst a financial adviser can take your preference to transfer into account, they are obligated to investigate the reasons for that preference as well as to gather information about all your personal circumstances.

The latter will include health and financial information, such as current and future outgoings, all sources of income available to meet those outgoings, your attitude and ability to bear investment risk, your general attitude to having a certain income for life, your ability to cope with flexible income, the likelihood of dipping into and out of a flexible pot and running out money etc.

If all the things they discover about you indicate that you're likely to be in a better financial position staying in the DB scheme, then despite your wish, they'll generally be obliged to recommend you stay put.

dunstonh

Some offer initial advise for free, others charge a lot.

No-one does advice for free. Most IFAs will offer an initial meeting free of charge but no advice is given in that meeting.

Silvertabby

Beware of the firms offering 'free' advice - they will 'recommend' the transfer in return for a chunk of your transfer value.

xylophone

My pension scheme administrators have advised they only need the official confirmation (letter of authority etc) that I have consulted with a Financial Advisor

No skin off their noses if you go.....:)


http://forums.moneysavingexpert.com/showthread.php?p=73120599#post73120599

See post 3.

As you have discovered, some pension schemes will not accept a transfer without a positive recommendation.

jamesd

Your original scheme is required to ensure that you have received advice. No surprise that advisers will insist on providing advice, since they know that you are required to get advice.

You're then free to ignore the advice. Some advisers apparently will refuse to say you have received advice if you don't want them to do the transfer work (and charge for it). Others may refuse to say you've received advice if their advice is not to transfer.

Under current rules advisers are required to do things like assuming you'll buy a lifetime annuity with the whole pot even though that's an inappropriate product for early retirement, where your need will be drawdown until state pension age then if you're normal, state pension and gradually reducing income need for the rest of your life. This standard analysis is also required to assume investment growth that is well below historic levels.

In essence, the mandated analysis is rigged to make transferring look bad and it'll suggest bad when it's really good.

Advisers can add to this and explain why that standard is not applicable to your circumstances. Ensure that you give them sufficient information to do so, like that summary of likely income changing need that I gave.