Trouble accessing pension

worried_bear

I have a small pension with Ageon that is worth approx £32,000.

Im unable to return to work after illness and filled the necessary paperwork to access the monies. Ageon have told me that I can only access the monies through a financial advisor. I did speak to an financial advisor who said as the pot is so small, they wouldn't deal with me. Just about to go back them, but any advice anyone can give me would be appreciated.

atush

How old are you?

How severe is your illness (ie do you have a prognosis of less than 12 months?)

xylophone

Ageon have told me that I can only access the monies through a financial advisor.

Does the pension have "safeguarded benefits"?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Linton

Is the pension a simple D.C. pension pot with no guarantees? If so you can find a pension provider who will allow you access and get them to transfer-in your Aegon pension. You wont need an IFA. You normally need to be 55 to access a pension.

A SIPP. with most of the providers often discussed on this forum will do the job.

dunstonh

Ageon have told me that I can only access the monies through a financial advisor.

That is because aegon retail their product via advisers.

I did speak to an financial advisor who said as the pot is so small, they wouldn't deal with me.

Thank the EU, the FCA and the compensation culture for that. EU for MiFIDII (that makes dealing with small value cost ineffective) and FCA for still treating drawdown as a high-risk transaction for advisers to carry out and the compensation culture as we already have claims companies cold calling people trying to put in fake complaints.

Your best bet is to transfer to a DIY provider.

worried_bear

Thank you so much for all your replies and wealth of knowledge. I really am a novice in this field.

I am 54, had a brain injury, its not terminal. The pension was through my last employer and as far as I can see there was no guarantee

Will digest further this information and see what best way to proceed

pip895

HL (Hargreaves Lansdowne) have a very good reputation for customer service - they are not the cheapest but will work out far cheaper on that sort of pot size than a IFA, even if you could find one to advise you.

They will arrange the transfer and once you are 55 you can take the money by flexible drawdown.

Cheaper options are available, but you are talking small fractions of a percent and you could probably do with the minimum hassle.

atush

Well at 54 you cant get the money now.

And before you do try and get it at 55, see how it will affect any benefits you are eligible for re your injury.

Malthusian

atush wrote: »

Well at 54 you cant get the money now.

Yes he can, subject to the scheme rules. "Im unable to return to work after illness" https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement

But your advice to check whether taking the money out will affect eligibility for means-tested benefits is very good advice.

worried_bear

Thanks again for the additional comments.

To clarify, I AM able to access my pension early, due to ill health.

I have researched the best option and well aware of the tax implications and how it could potentially affect my benefits.

Having spoken to Ageon this morning, they are referring me onto the next stage of accessing my pension.

worried_bear

atush wrote: »

Well at 54 you cant get the money now.

And before you do try and get it at 55, see how it will affect any benefits you are eligible for re your injury.

Yes I can. A report from my neurologist, give me early access.