Drawdown - Do all companies need to offer this?

hayleyrussell19

*posting for a family member* 
Tried to do some searching online but can’t find a definitive answer anywhere.. Do all pension schemes have to offer the drawdown option? Contacted my pension provider to be told they don’t offer the 25% tax free lump sum followed by a drawdown account and that if I would like to do this, I’ll need to transfer my pension to another company. Looking for recommendations if anyone has previously transferred their private pension. 

hyubh

hayleyrussell19 said:

*posting for a family member* 
Tried to do some searching online but can’t find a definitive answer anywhere.. Do all pension schemes have to offer the drawdown option? Contacted my pension provider to be told they don’t offer the 25% tax free lump sum followed by a drawdown account and that if I would like to do this, I’ll need to transfer my pension to another company. Looking for recommendations if anyone has previously transferred their private pension. 

Offering drawdown is not compulsory, even for DC schemes (and not applicable to DB ones). First question to answer before getting into the rights, wrongs and mechanics of transferring is inevitably, does the existing pension come with 'safeguarded benefits' (e.g. it's a final salary pension, or a DC one with a guaranteed annuity rate) or not...?

dunstonh

Do all pension schemes have to offer the drawdown option?

No.  Indeed, some cant by their very nature.

Looking for recommendations if anyone has previously transferred their private pension. 

Most modern pensions will do it except those at the basic end.

Albermarle

It is probably worth noting that as long as the pension is a simple DC one with no guaranteed benefits , then transferring a pension on line  is pretty easy nowadays. You will need to open a new pension and request the new one to transfer in the old one. .

longwalks1

Albermarle said:

It is probably worth noting that as long as the pension is a simple DC one with no guaranteed benefits , then transferring a pension on line  is pretty easy nowadays. You will need to open a new pension and request the new one to transfer in the old one. .

Sorry for hijacking your thread OP, but Albermarie is there usually a fee to transfer one pension to another?  I've got another thread running here about my DB pension and its CETV value, but wondering if there is a fee to transfer from one (non DB) pension to another?

jamesd

Only if you choose to pay an IFA.

Albermarle

britishboy said:

Albermarle said:

It is probably worth noting that as long as the pension is a simple DC one with no guaranteed benefits , then transferring a pension on line  is pretty easy nowadays. You will need to open a new pension and request the new one to transfer in the old one. .

Sorry for hijacking your thread OP, but Albermarie is there usually a fee to transfer one pension to another?  I've got another thread running here about my DB pension and its CETV value, but wondering if there is a fee to transfer from one (non DB) pension to another?

Normally no fee but some older pensions may still have an exit fee but usually it is not a large amount .

garmeg

Albermarle said:

britishboy said:

Albermarle said:

It is probably worth noting that as long as the pension is a simple DC one with no guaranteed benefits , then transferring a pension on line  is pretty easy nowadays. You will need to open a new pension and request the new one to transfer in the old one. .

Sorry for hijacking your thread OP, but Albermarie is there usually a fee to transfer one pension to another?  I've got another thread running here about my DB pension and its CETV value, but wondering if there is a fee to transfer from one (non DB) pension to another?

Normally no fee but some older pensions may still have an exit fee but usually it is not a large amount .

And if you are over 55, the exit fee is capped at 1% of fund value.