Taking personal pension lump sum process/timescale.....

phoebe1989seb

xylophone wrote: »

How much is involved?

Would he plan to take any income from the pension on top of the lump sum?

Is he currently contributing to a DC pension?

1) about £80,000 in total, which is more than we originally thought
2) not certain
3) no, but we have other retirement provisions

Thanks again for all your excellent advice, guys!

Will definitely look into contacting the pensions advisory service

xylophone

Will definitely look into contacting the pensions advisory service

He could seek an appointment with Pension Wise.

https://www.pensionwise.gov.uk/en?gclid=EAIaIQobChMI76rm5uOB4gIVB7LtCh00TQJ8EAAYAiAAEgIiIPD_BwE

It seems likely that he will need to move the pension to another provider.

He could consider a transfer to a SIPP - example

https://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+HLS&gclid=EAIaIQobChMIgbXL2vSa4QIVQSrTCh0R_wKiEAAYASAAEgJf1vD_BwE

The PCLS could then be drawn and the balance held as required (invested/cash etc).

phoebe1989seb

Okay, so we eventually got around to contacting Prudential about drawdown.

As expected, their written reply stated the following -

"Income drawdown is not directly available from this plan. If you'd like to go ahead and move your savings into an Income Drawdown product, please contact us and we'll let you know what products we have and what you'll need to do.
You may want to seek the advice of a financial advisor as some of our products can only be accessed through them, if you call us we can help you find one that's local to you."

DH contacted the Pru through their secure email system confirming he wished to go ahead and transfer, asking which of their products would allow him to do this (as per their above referenced letter).

Today he gets a call from their call centre (Scotland?) saying he'll need an appointment with a Prudential FA who will be in touch to arrange an appointment. If DH decided to transfer to another Pru product the financial advisor will be due a fee.

Surely this is unnecessary?

Why can't they just inform him of the suitable products via letter, email or phone?

Their letter didn't state that all suitable products required the involvement of a FA.....

We have taken advice from a family member who formerly worked in a pension advisory capacity - not to mention advice received here - and have reached a decision. We just need to know what Prudential products allow drawdown....

We appreciate that some of their products can only be accessed via a FA but does really need to meet with their advisor to get a list of all suitable products?

Edited to add - the person that called was most unhelpful, being unable to answer the most basic of questions. I presume this is not the same department the Pru suggests you contact for advice on their products, but merely someone who facilitates appointments.

xylophone

You had read post 13 above which has a suggestion?

Have you/ has he found the answer to the question as to whether or not he is currently contributing to a DC pension ( or may wish to in the future)?

This is important because of MPAA - see here.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

Simply taking the PCLS does not trigger the MPAA.



Has he yet sought an appointment with Pension Wise if he wishes to discuss the options?

dunstonh

Today he gets a call from their call centre (Scotland?) saying he'll need an appointment with a Prudential FA who will be in touch to arrange an appointment. If DH decided to transfer to another Pru product the financial advisor will be due a fee.

Surely this is unnecessary?

Yes it is necessary if you want their product. They only retail it that way or via IFAs.

Their letter didn't state that all suitable products required the involvement of a FA.....

Pru sales reps can only recommend Pru products and options and Pru do not have products that cover all areas.

We have taken advice from a family member who formerly worked in a pension advisory capacity - not to mention advice received here - and have reached a decision. We just need to know what Prudential products allow drawdown....

There is no benefit in knowing that. a) because there is only one product they offer that does and b) you would either need to use their sales rep or go to an IFA (who would most likely recommend something different)

We appreciate that some of their products can only be accessed via a FA but does really need to meet with their advisor to get a list of all suitable products?

There is no list (unless you call it a list of 1 product).

Edited to add - the person that called was most unhelpful, being unable to answer the most basic of questions. I presume this is not the same department the Pru suggests you contact for advice on their products, but merely someone who facilitates appointments.

Insurers put their low knowledge/low skilled workers on the call centre. You dont put your expensive staff on the call centre

You need to decide if you want to DIY or get advice. If you want advice, then dont use Pru's salesforce but use an IFA. If you want DIY, then use a DIY provider.

phoebe1989seb

xylophone wrote: »

You had read post 13 above which has a suggestion?

Have you/ has he found the answer to the question as to whether or not he is currently contributing to a DC pension ( or may wish to in the future)?

This is important because of MPAA - see here.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

Simply taking the PCLS does not trigger the MPAA.



Has he yet sought an appointment with Pension Wise if he wishes to discuss the options?

Thank you.

I did answer that question (re: the DC pension) in post 12. He isn't contributing to a DC pension and is unlikely to be doing so in the future as he is currently self employed on a small scale alongside carrying out a major property refurb.

No, he hasn't yet sought an appointment with Pension Wise, we both agree that he should probably do so though

Regarding the linked SIPP, I am investigating this on his behalf.....my late parents were with HL for their investments so I am vaguely familiar with them

phoebe1989seb

dunstonh wrote: »

Yes it is necessary if you want their product. They only retail it that way or via IFAs.


Pru sales reps can only recommend Pru products and options and Pru do not have products that cover all areas.



There is no benefit in knowing that. a) because there is only one product they offer that does and b) you would either need to use their sales rep or go to an IFA (who would most likely recommend something different)


There is no list (unless you call it a list of 1 product).



Insurers put their low knowledge/low skilled workers on the call centre. You dont put your expensive staff on the call centre

You need to decide if you want to DIY or get advice. If you want advice, then dont use Pru's salesforce but use an IFA. If you want DIY, then use a DIY provider.

Thank you.

So their letter was somewhat ambiguous and misleading -

"If you'd like to go ahead and move your pension savings into an Income Drawdown product.... we'll let you know what products we have" (my bold)

And "you may want to seek the help of a financial advisor as some of our products can only be accessed through them" (my bold)

Why not just say they have only one product and that it can only be accessed through a FA?

Am seriously considering DIYing now as I don't have much faith in them..... moreover we know what we want to do so don't feel we need the Pru telling us.

xylophone

He isn't contributing to a DC pension and is unlikely to be doing so in the future as he is currently self employed on a small scale alongside carrying out a major property refurb.

There is no reason why a self employed person shouldn't contribute to a pension.

If he transferred out to the SIPP, he could take the lump sum, leave the balance invested and continue to contribute if this suits his retirement strategy.

phoebe1989seb

xylophone wrote: »

There is no reason why a self employed person shouldn't contribute to a pension.

If he transferred out to the SIPP, he could take the lump sum, leave the balance invested and continue to contribute if this suits his retirement strategy.

Oh, I know....it was more that I was explaining his current income is rather hit and miss so not regular enough to be able to commit even random contributions.

Previously he has made payments to a pension whilst self employed.

xylophone

Even if he had no relevant income, he could still contribute £2880 net per annum to a SIPP and receive tax relief of £720.