Requirement to get independent advice

agrinnall

In November I will reach the normal retirement age (60) for a pension from a previous job. This is primarily a DB pension with a transfer value of around £130K.



I have advised the pension admistrators that I wish to take the 25% tax free lump sum (c. £33K) and annual pension of c. £5K.



However, I also invested in what at the time was an AVC scheme but is now referred to as APeCs. The amount for that is only £5.5K and as I understand it that amount will form part of the lump sum. But because it's DC the administrators have sent me an indemnity form so that I can indicate whether I have sought advice either from Pensionwise or an IFA. Pensionwise's next phone appointment is only 2 days before the date the pension is due to be available, so that seems impractical, and consulting an IFA seems like complete overkill for such a small sum, and a small proportion of the total to be paid.


If I return the form saying I haven't sought advice from either but ticking the box to indemnify the administrators anyway, is it likely that they will accept that, or will they come back to me to say I need to do one or the other even if that delays payment of the lump sum and the start of pension payment?

xylophone

https://rbs.tbs.aon.com/benefit-learn-more/Additional-Pensions-Contributions-(APeCs)/APeCs-Gue

As above?

Can you buy extra pension?

Why are they saying that you need advice? And since Pension Wise don't give advice but just explain options what use would consulting PW be?

I am mystified.

AnotherJoe

agrinnall wrote: »

If I return the form saying I haven't sought advice from either but ticking the box to indemnify the administrators anyway, is it likely that they will accept that, or will they come back to me to say I need to do one or the other even if that delays payment of the lump sum and the start of pension payment?

I dont think anyone here can say but it seems to be a CYA form and I'd just lie, say i had a chat with Pw and tick the form to that effect.

greenglide

So just say "no, i havnt taken advice".


I re all that it was a question that my scheme asked when I took the AVCs as the TFLS when I took my pension.


I doesnt sound as if they are actually mandating that advice must be taken.

Dox

agrinnall wrote: »

But because it's DC the administrators have sent me an indemnity form so that I can indicate whether I have sought advice either from Pensionwise or an IFA.

Doesn't make any sense. If it's DC and you are taking it as part of your tax free lump sum (very common) there is no question of needing to take any sort of advice (or guidance, in the case of Pensionwise).

dunstonh

A lot of pension companies will ask the question whether there is a legal requirement or not. It allows them to tailor their paperwork and process.

Advised cases will often bypass any internal disclosure requirements, such as the three lines of defence that many pension providers operate (a phone call on risk warnings etc).

agrinnall

It is the APeCs as described in xylophones link (at least, I assume so, as I'm no longer a member of staff I don't have the login required to see the page). I guess that the requirement is as described by dunstonh, i.e. a back covering exercise.



I had considered both options as posted by AnotherJoe and greenglide, but I think I will just go with the latter, which has the advantage of being true.