Section 32 pension about to close - what to do?

pauls01

@wallpaper, info very much appreciated. Unfortunately, from looking at their websites just now, Transact require FA for all their products and Od Mutual require it for their Buyout Bond, which would be the product appropriate for me.

Having browsed elsewhere online this morning, looks unlikely I will be able to transfer and keep the enhanced lump sum.

Found a Department for Work and Pensions factsheet “Pension benefits with a guarantee and the advice requirement”, which I think was referred to earlier in the thread and I will send to Scottish Widows in support of my complaint.

jamesd

pauls01 wrote: »

from looking at their websites just now, Transact require FA for all their products

Normal but not mandatory when I spoke with them some years ago. I found them to be friendly and helpful so I suggest that you give them a call.

They aim mainly at pots well over 250k via the IFA channel in their marketing. They are a full service and flexible provider.

pauls01

Hi James, thank you for the suggestion. Rang this morning and unfortunately they do require an IFA for setup, but said can then be removed from account after set-up.

Weighing up (limited) options at the moment and continuing to discuss with Scottish Widows, appreciate the information received on this thread.

The_Doc

Aegon have confirmed to me in writing that the requirement that advice is needed to take a non-safeguarded protected PCLS from a plan that has no safeguarded benefits "is an Aegon rule due to the complexities associated with the transaction" and is not something imposed by the regulator.

The only options I have that do not require IFA are UFPLS of the whole amount or PCLS with 3rd party annuity.

I am considering my next steps.

xylophone

"is an Aegon rule due to the complexities associated with the transaction"

Then will you make a formal complaint?

https://www.fca.org.uk/firms/fair-treatment-customers

sandsy

Imposing a rule that doesn't let you access the benefits you are contractually entitled to doesn't seem to be in line with treating customers fairly. The regulator requires all firms to treat customers fairly.

The_Doc

I am exploring the option of simply transferring the whole pot to another provider and accept losing the non-safeguarded protected PCLS. I want to know if they will hold the same "advice is needed" requirement for that. They made no reference to this option in their latest reply, so clarification is awaited.

Blackavar

Hi. OP still here but really unimpressed with Financial Ombudsman. I sent my complaint 6 months ago and and have received nothing. Chased, and advised they were very busy. My Section 32 pension is now in a cash fund so not invested which is very annoying (massive understatement).

The_Doc

Aegon have confirmed that they do not require advice to be obtained if I wish my S32 pension to be transferred to a 3rd party provider (such as a SIPP) but do if I wanted to do the same to an Aegon product.

Given that my likely use of this pension is as an inheritance (so flexi-access is important for tax efficiency), I am currently inclined to transfer it elsewhere and forego the ehanced PCLS offering.

Blackavar

Please don't give in to this. What complexities could there be? This is really not treating customers fairly imposing FA charge. You (and I) don't want advice, we just want a straightforward transaction that doesn't impose unfair restrictions. I have a complaint registered with the Financial Ombudsman but nothing has happened for 6 months so I'm not sure if this is the organisation to appeal to.