Pension freedoms?

jenkis02

Good afternoon, long time lurker - great resource and community! Thought I'd ask if anyone else has had problems with trying to switch from a defined benefits scheme? 
I'm 55 early next year and have a dB with approx 250k. I have some medical issues ( I guess many of us do in wonderful middle age!) and am taking VR. I want to go to a drawdown scheme and use the 25% tax free to help me retrain in a less stressful field. I'm not looking for specific advice but wondered what (if anything) I'm doing wrong. I have contacted a handful of DB specialist firms and the reaction has been the same, a firm NO! One chap told me that they'd only consider health issues if I had terminal illness with life expectancy "ideally" under 18 months! I understand it's a huge decision in anyone's life and they are concerned it could be the next ppi scandal with ripped off and skint pensioners, but it doesn't seem there's any real "pension freedoms" at all? Be interested to know if anyone else has experienced similar? Many thanks in advance! 

[Deleted User]

When I approached a IFA there was a queue of cases to be looked at, I was informed there were urgent medical cases went to the front of the queue. (which was not me - they got around to me after a few weeks).
What I do suggest is, please do not request a CETV until you have a IFA that will take your case.
That will eat into your 3 month or so guarantee window.
I have had a DB transfer in the past 9 month, nothing wrong with me, but I had sound reasons for doing so, and I also had prepared detailed budgets and portfolios that helped my case. (they will ask you all of this including printouts of your State Pension forecast, health, priorities, lists of all assets, savings, debts etc)

Albermarle

Good afternoon, long time lurker - great resource and community

In which case you must have read multiple threads on the same topic already as it comes up three of four times a week at least .

This thread also contains links to others .

https://forums.moneysavingexpert.com/discussion/6203528/transferring-a-db-final-salary-pension-cheapest-option-of-obtaining-advice#latest

dunstonh

 but it doesn't seem there's any real "pension freedoms" at all?

You have a DB pension.  The so called "pension freedoms" were not aimed at you. They were aimed at DC pensions.

Be interested to know if anyone else has experienced similar?

Historically, around 9 out of 10 people were best left in the DB scheme.  Currently, at a guess, its around 6 out 10 due to gilt yields.   Plus, at this moment in time, you have a regulator that considers a DB pension transfer as missold unless proven otherwise.   So, the justifications for doing it and the financial ramifications have to stack up.

I'm 55 early next year and have a dB with approx 250k. 

That is not a large DB CETV.  It suggests you have not had a long working life on this pension.  So, what other retirement provision do you have?   This will be important as you are effectively asking to rob your retirement years to pay for something in your working life.  So, do you have enough alternative income to justify robbing it early?

What other savings/investments do you have available for spending now or in the pre-retirement period?

You say you wish to retrain and take the 25%. That suggests your savings/investments are limited or even non-existent.  

xylophone

I'm 55 early next year and have a dB with approx 250k. I have some medical issues ( I guess many of us do in wonderful middle age!) and am taking VR. I want to go to a drawdown scheme and use the 25% tax free to help me retrain in a less stressful field. 

Do you not have a redundancy lump sum to help with retraining costs?

In view of your redundancy, will you be allowed to draw your DB pension without actuarial reduction?

jenkis02

Many thanks for your replies - I appreciate you taking the time. Oh, and by the way,  it may be a regular question, but it's new for me. I can now see I'm not where I thought I was financially and long term. So time for a new plan!