problem with Phoenix

ronaldsway

Is anyone else having difficulties with this pension company? I have been trying for months to alter my capped drawdown pension to a flexible drawdown. I've sent them several messages, received several , always offering an information pack. I've read the pack I don't need to read it again. I've phoned them twice now and even gone through an 'interview' on the phone to ensure that I was fully aware of the pros and cons of moving my pension over to flexible drawdown. Assuming that the process had been completed, I then wrote a letter to them several weeks ago (letters being the only way they will respond to a withdrawal request) requesting a lump sum. Yet again...another letter from them landed on my doormat today telling me I cannot access more of my funds because ...I'm still on capped drawdown! The action would exceed my maximums per financial year but not to worry...they will send me an information pack! I phoned them today to complain and apparently their 'systems' are preventing them from making the label change from capped to flexible and that, finally, is the real truth. Hence the delay and fudging . My complaint was 'registered'. What does that mean? I'm guessing another wait. We are talking months here already. Quite a shambolic company that is preventing me from accessing my funds through utter incompetence.

dunstonh

Is anyone else having difficulties with this pension company?

Depends on which company you are referring to. Phoenix is the brand but they operate many of their bought companies out of the original life office. The quality of the service varies enormously with each office.

I have been trying for months to alter my capped drawdown pension to a flexible drawdown.

At a guess, that would probably be the old Winterthur plan as I cant think of any other plans from Phoenix that offered drawdown.

I phoned them today to complain and apparently their 'systems' are preventing them from making the label change from capped to flexible and that, finally, is the real truth. Hence the delay and fudging .

I cant remember if they offered flexible drawdown or not. Maybe that is the issue. I was a rubbish product and you should consider alternatives.

My complaint was 'registered'. What does that mean?

It means they have acknowledged your complaint and the complaints team will look at your complaint and respond.

if they cant do flexi-access drawdown, they will tell you that. If they can, they will apologise for their mistakes and try and resolve it.

xylophone

I was a rubbish product and you should consider alternatives.

Don't do yourself down!:)

Malthusian

ronaldsway wrote: »

Is anyone else having difficulties with this pension company?

Shorter version of Dunstonh's answer: Lots. Why not just move?

Phoenix's business model is to buy up old insurers who aren't accepting new business anymore, cut administration to the bone, and collect money from anyone who either doesn't want to move or can't due to transfer penalties. Complaints like yours are a business cost.

ronaldsway

Thanks for the replies, detailed or otherwise. I'm hoping to extract most of my pension pot over the next two or three years. Hence the request to have the flexible drawdown. It seems a bit unwieldy to move to another company just for the purpose of taking it all out and I'm also concerned that I will end up paying for the privilege. E.g I believe that I would have to pay for a financial advisor to oversee the transfer; just so I can get my money out! Crazy.

dunstonh

E.g I believe that I would have to pay for a financial advisor to oversee the transfer;

No you dont.

If it is the Phoenix Wealth (ex AXA Wealth, ex Winterthur) drawdown pension, that was never meant as a DIY provider. It is was an old product to cater for original drawdown a decade or so ago through intermediaries.

It became dated before AXA took it over. They couldn't be bothered to move people to their AXA platform and then decided to sell up and leave the UK. Phoenix took it over with the intention of running down the closed book. They are not interested in new business.

Flexible drawdown is a modern option and bolting that onto legacy products is not always easy and/or cost-effective. It may cost them £10million to adjust the software but if they only have 100 people likely to utilise that function, its cheaper to tell them they can't do it and go elsewhere. As it costs nothing to leave in most cases and nothing to join in most places, a pension switch can be cost neutral.

Albermarle

Phoenix's business model is to buy up old insurers who aren't accepting new business anymore, cut administration to the bone, and collect money from anyone who either doesn't want to move or can't due to transfer penalties. Complaints like yours are a business cost.

I have a Standard Life pension and was worried when they were bought by Phoenix, due to their historical record , and asked that question on this forum.
The answer ( from Dunston ) was that it all depends on which provider you were with when Phoenix took over ( as explained above each has different legacy issue with IT etc ) and the takeover by Phoenix was not necessarily a bad thing in itself.

Albermarle

E.g I believe that I would have to pay for a financial advisor to oversee the transfer; just so I can get my money out!

As I understand it, moving a DC pension with no special conditions to another provider can be done very easily online , with no need for an IFA. The only issue would be picking the funds within the new pension to invest in .

xylophone

Thanks for the replies, detailed or otherwise. I'm hoping to extract most of my pension pot over the next two or three years

Might be worth staying in cash?

Had you considered a transfer to HL? No fees for holding cash and admin usually very efficient.

https://www.hl.co.uk/pensions/transfer-to-the-vantage-sipp

ronaldsway

Seems you are right on the nail with this. Yes it is an old Winterthur/Axa pension that was transferred. I was on the phone to them yesterday and it seems they have raised my issue as a formal complaint and will be addressing it immediately. Presumably this may well involve some additional work their end but I care not.

I'd like to see the outcome of this before deciding whether to transfer to another provider or selling part of the pot. Maybe they will be really apologetic and offer me a Lamborghini..:rotfl:

OldMusicGuy

I moved five old DC pensions to a flexible SIPP with Hargreaves Lansdown. It's straightforward, you can do it yourself (you don't need an IFA) and it doesn't cost anything. You just need to check the existing pensions to ensure there aren't any good benefits you would lose by transferring (like a nice guaranteed annuity rate for example).