Death Benefit advice, Defined Contribution Scheme

Aristotle67

Albermarle said:

The  point is that if markets are kind , and you do not take out excessive money out every year, the pot might never shrink. It might not happen but it is a  possibility to be aware of 
Otherwise as you take money out then the pot will slowly go down of course .

As mentioned now by other posters , you can transfer to a new pension and not actually invest it , and hold it in cash . 
However I think you can see that almost everybody thinks keeping the money within a pension tax shelter is a good idea.

Yes, I do get everything you have said above, Albemarle. Thanks as always. 

Albermarle

 I am focussed on this and even I am starting to see that maybe I am doing so too much. I keep thinking that with rising energy prices, rising interest rates, rising inflation, Putin massing near Ukraine, that maybe we are heading for a mighty crash and that World War Three might be about to break out.
What I do appreciate is that when markets crash, it is only a problem if you have to sell. If you don't have to, then you can wait for a recovery. However, would I be right in thinking then when you take regular lump sum withdrawals from a drawdown that units are sold in order to pay for this with the outcome that you end up with less units? If the units are worth much more than they were, then the value of your pot can still be high despite the decreased number of units; but if they are not, the value of your plot plummets.

There are always reasons to think a crash is coming and one day it will happen. Over 20 years it will probably happen two or three times.

The normal advice is to keep aside a tidy amount in cash , to use whilst markets recover , so you do not have to sell at the bottom.

Aristotle67

I have had a terrible day today and have missed my partner more than ever. It has been a really emotional 24 hours.

The issue with the pension is really getting me down. It is not a case of not wanting to rush into something or making an unwise decision. I am totally clear as to what I would like to happen. It is the difficulty with arranging this which is killing me.

I am going to make a last effort to see if what I desire can be arranged. I need people to understand that I loved, and still love, my partner dearly. I also need people to understand that there are only two people in the world that I have ever trusted and ever will trust. They are my now deceased partner……and myself. I need people to understand that I what I would like to happen needs to happen for the love and the honour of my partner, and to help me achieve peace in my heart…eventually. In short, I am appealing to people to try and understand.

I would like to point out that on the now discontinued Matched Betting Board on the MSE Forum I gave numerous pieces of free legal advice to people who were having disputes with bookmakers, gambling and gaming companies; both in open forum and through PMs. I had been an academic lawyer in my previous life with a particular interest in contract law, so I was very useful to many people who found themselves in difficulties. In some cases legal action was taken and the case against the company was won. I am now hoping there is a kindly soul on here who could help me in a similar way. I need someone who will disregard the normal approach to financial advice and concentrate on the human and personal touch.

Sorry for the sob story……but sobbing is what I am doing.

Can I at this point thank everyone who has posted in this thread? I hope I have not come across as being difficult, argumentative or unduly obstinate, though I suspect that I probably have. None of these was my intention.

So that this does not go on to be a long post, I am going to make a second post detailing my request. Can I ask moderators not to delete the above as I hope it puts what is to follow into a context. Thank you.

Aristotle67

Here goes.

By expression of wish I have inherited my partner’s Defined Contribution Pension Pot with Prudential. The value of the pot is around £290,000. My partner had chosen the option of an income drawdown and made monthly withdrawals of £1500 from the pot. Her pot was invested in what she told me was a low risk product. The Scheme is Prufund Risk Managed 2 Fund Series E. She paid annual product charges and ongoing advisor charges for this. A small amount of the Pension Savings account was invested as Cash SIPP, the rest of the Pension Savings account and the Pension Income account was invested in Prufund Risk Managed 2 Fund Series E.

Prudential have asked me to select a chosen option for them to pay to me the benefits of the account. They have sent me a form to complete with various options on it.

I would like to chose the option of an Income Drawdown with Prudential.

In order to do so, Prudential require me to have a financial adviser to take this option. The adviser should submit an application for me online prior to me sending the form back to Prudential. The account number for this is to be entered on the form.

That is where I am at present.

This is what I would like to happen.

I would like to engage a financial adviser to do as the Prudential require. Not only would I like to select the Income Drawdown with Prudential, but I would like the account to be invested in the same way as my partner had; partly as Cash SIPP and the rest in Prufund Risk Managed 2 Fund Series E. I am happy to pay annual product charges and ongoing advisor charges for this. I would, however, reduce the monthly drawings from £1500 to £1000.

I do not wish to take an income drawdown with another provider; nor do I wish to operate a DIY policy towards choosing and managing the investments. I do not understand investments and would not have a clue what I was doing. I have decided against taking the pot in a lump sum and the annuity option.

The reason I would like to chose what I have outlined was explained in my previous post. I do need people to understand that. I also need people to understand that I will be really happy with this choice if it can be arranged.

With this in mind, I do not wish to go through all that a Financial Adviser would take me through, such as personal circumstances, requirements, attitude to risk, different options, even superior products. I would like to engage an Adviser who will say that they have met with me and this is the option I would like to select, even if it is against what they might think is best. If there are various boxes which need to be checked, then okay; but I would hope that this would mean the work required would be less than in comparison to a normal situation, as I am clear on what I would like. I would hope that is the fund is to be mine that I would be free to exercise this option.

Can anyone help me bring this about, please?

I know that a Financial Adviser would act in my best interests…financially. But my priority is not my financial situation. It is my heart and my love and honour for my partner. Please understand that.

Sometimes doctors do not know what is best for you; sometimes the patient understands his body much better than the doctors do. Sometimes solicitors might advise a client, but the client knows what he wants and instructs the solicitor in a way not in line with the advice. Sometimes there are more important considerations than optimum financial security. Sometimes acting and thinking with the heart is preferable to thinking with the head.

Please, everyone, don’t have a go at me. You will probably think I am crazy; but please allow a broken man his indulgences and help me to try and move on.

Albermarle

With this in mind, I do not wish to go through all that a Financial Adviser would take me through, such as personal circumstances, requirements, attitude to risk, different options, even superior products. I would like to engage an Adviser who will say that they have met with me and this is the option I would like to select, even if it is against what they might think is best. If there are various boxes which need to be checked, then okay; but I would hope that this would mean the work required would be less than in comparison to a normal situation, as I am clear on what I would like. I would hope that is the fund is to be mine that I would be free to exercise this option

I think it is unlikely you can achieve what you want with regard to a financial advisor.

They have a legal duty to offer you what they think is your best option(s) . They can only do this by having all your personal and financial details . As far as I know without these they are not allowed to offer any advice. If they just met you briefly and rubber stamped what you wanted they could be in serious trouble if it ever came out .

Earlier in the thread someone suggested that you step back for a while and not to make financial decisions whilst in a heightened emotional state . I think that is very good advice . The pension will not come to any harm for a few weeks, or longer , if you delay filling in the form they sent you.

Aristotle67

Albermarle said:

They have a legal duty to offer you what they think is your best option(s) . They can only do this by having all your personal and financial details . As far as I know without these they are not allowed to offer any advice. If they just met you briefly and rubber stamped what you wanted they could be in serious trouble if it ever came out .

I see.

Oh, dear. This is so difficult for anyone to understand if they did not know my partner and I. It is difficult to explain that and to get this over. There will be no possibility of any peace for me if I cannot arrange things as I have detailed above.

I really don't want financial advice and I cannot tell you how disappointed I am that Prudential insist on me having this.

Earlier in the thread someone suggested that you step back for a while and not to make financial decisions whilst in a heightened emotional state . I think that is very good advice . The pension will not come to any harm for a few weeks, or longer , if you delay filling in the form they sent you.

Thank you, Albemarle, but I am afraid that you don't know me or my partner.

Everyone is approaching this from the perspective of making financial decisions. I was at great pains in my last two posts to try and get over that this is not the approach I want to be taking. Is there someone out there who will please see that, and accept it? I know most people will think it is crazy, but I need someone to appreciate that the heart is always going to rule in this situation, and never the head.

I suspect I am going to have to write to Prudential and tell them the issues I am having. It may not do any good, I doubt anything will change, but I have nothing to lose by trying. If they have advisers that they use for their products who could do what is required, that would be perfect. I doubt it myself, but I can but enquire.

QrizB

Aristotle67 said:

I really don't want financial advice and I cannot tell you how disappointed I am that Prudential insist on me having this.

Sadly this is a regulated financial transaction. If you don't take advice, you won't get the access you want to the account.

I suspect I am going to have to write to Prudential and tell them the issues I am having. It may not do any good, I doubt anything will change, but I have nothing to lose by trying.

The Pru will have a process, and they will expect you to follow it. There is little scope for discretion.

Aristotle67

QrizB said:

 Sadly this is a regulated financial transaction. If you don't take advice, you won't get the access you want to the account.

OK. If that is how it is, then that is how it is.

If I were to take financial advice, am I at liberty to say to the adviser that I have listened to your advice and what you have recommended; however I choose to reject this completely. I would like to set up the investment that I have previously detailed. And will the financial adviser do that for me? In short, does he have to act according to my instructions?

Albermarle

I don't think this way is going to work . The advisor will probably be obliged to tell Prudential that you want to ignore their advice and then nothing will happen. However I would assume some negotiation with the advisor to an agreed position that differs from their original view, would be very possible.

Not sure if you realise  but the low risk Pru investment you want to put the money in is nothing special . Similar , if not exactly identical funds are available in the market , or something very similar could be easily constructed from a two or three different funds.
So why not transfer the money to a new pension ( as many posters have recommended ) and then invest in something very similar to the Pru fund . No advisor costs and you get what you want to achieve .

If you go down this route , you will get plenty of helpful guidance from this forum to help you on your way ( if you want it ) 

dunstonh

If I were to take financial advice, am I at liberty to say to the adviser that I have listened to your advice and what you have recommended; however I choose to reject this completely. I would like to set up the investment that I have previously detailed. And will the financial adviser do that for me? In short, does he have to act according to my instructions?

It is unlikely an FA would do that.      Some IFAs may do it. 

Many IFAs, myself included, do not like the Pru's contract. It is expensive and limited compared to whole of market options.  Pru reps, on the other hand, can only retail the Pru product.     So, you are effectively asking an IFA, if you used one, to put you in a position that they are possibly going to feel is not the best place for your money.    Many will not do that.  Plus, you still end up paying the adviser for their advice even if you don't follow it.  Giving you the worst of all options.

I fear your lack of knowledge and understanding of what you have and what is available is causing you indecision and anxiety.   It also risks you making a bad decision because of that.