Prudential Pension Transfer to a Draw down

mjsmike

I have about 35K in Prudential DC pension which I want to use to help fund the next 3 years before my state and other DC pension are taken at 66.
Plan is to take 25% tax free and then drawdown 3 x 8.75K for the next three years. My only other income will be a 1K a year small old DB pension and ISA savings. I have done the calculations and will have enough to pay bills and fund my current life style.
What is the best way to do this? HL drawdown is often mentioned on this forum as a good option and hold the money in a cash fund. My main idea is to get all the fund money tax free if possible with minimum charges
Is this a sound idea?
What sort of charges can I expect?
Are the any other considerations?

kidmugsy

I transferred Pru AVCs to HL. Dead easy: HL deal with all the work for you. You can check their current charges on their website.

Linton

In principle it sounds like a reasonable idea. HL wont charge to transfer-in, whether Prudential would charge I dont know. HL is probably a pretty good choice for the platform as I believe they dont charge for taking drawdowns whereas other platforms do.

The one possible snag I can see would be if the Prudential Pension is an old one with guarantees. If so you would need IFA approval for the transfer, which would be relatively expensive.

mjsmike

The one possible snag I can see would be if the Prudential Pension is an old one with guarantees. If so you would need IFA approval for the transfer, which would be relatively expensive.

What are the rules reference guarantees? .I asked Does policy have GAR?
and was told NO

Linton

mjsmike wrote: »

What are the rules reference guarantees? .I asked Does policy have GAR?
and was told NO

You should be OK then. The rules are the same as for DB pensions: if the pension has guaranteed benefits and is valued at more than £30K you need to get advice from an IFA before it can be transferred to a DC environment. This is to protect you from inadvertantly losing out.

Muscle750

I have just done mine and ive took 25% and left £60k in drawdown which i dont intend to touch as yet. However be warned the admin side of the Pru is nothing short of shocking. Firstly they told me i didnt need a FA then months later they said i did , Then The FA which was one of theirs sat on paperwork for a while then when i chased up the 25% it hadnt even been set up due to and i quote "Human error" theyve already paid me compo. Even the person i spoke to on the phone couldnt believe how i had been treated.