ReAssure Exit Fee

240v

I have an old workplace pension with ReAssure that started as Crown Life, then Windsor Life. It is a no frills defined contribution pension with a retirement date of 2032 and a value of  £80K.

I've reached 55 and want to consolidate all my old workplace pensions into a Vanguard drawdown invested in one of their retirement funds (my stock market knowledge is very limited..) I plan on taking 25% tax free to pay off the mortgage.

The only company to charge an exit fee is ReAssure, who have told me (over the phone) that they will charge approx. 4% of the pension value if I transfer.

On their website it says that exit fees are capped at 1% for over 55's. Obviously I'm over looking something, can anyone explain what it is?

ReAssure offer a drawdown, so rather than lose the 4% would I be better off staying with ReAssure?

Notepad_Phil

240v said:

... On their website it says that exit fees are capped at 1% for over 55's. Obviously I'm over looking something, can anyone explain what it is? ...

What fund are you invested in? If it is a with-profits fund then it's possibly a market value reduction - https://www.sharesmagazine.co.uk/article/why-is-it-costing-me-to-leave-a-with-profits-pension

240v

Thanks for your response Phil.

It's a 'Protected Rights Account' (my serps got paid into it) invested in the 'Managed Pension Accumulator Series 01 (Managed)' fund.

dunstonh

240v said:

Thanks for your response Phil.

It's a 'Protected Rights Account' (my serps got paid into it) invested in the 'Managed Pension Accumulator Series 01 (Managed)' fund.

That fund is unit linked and the market value reduction will not apply.

Things to check are:
1 - is your DOB correct on the plan?
2 - Get the current value and transfer value in writing.  (you should also be able to ask for both over the phone)

Being told over the phone means you have someone working from a script.  The generic terms may be 4% but you are 55 or over and that means the 1% cap should apply.    The call centre person may not have realised your age.

Whenever an IFA contacts a provider for details on a plan, Current value and transfer value are high on the list.  Along with "are there any safeguarded benefits" and "is there any protected tax free cash entitlement"  amongst other things.   Don't rely on the call centre.  Get it writing.

ReAssure offer a drawdown, so rather than lose the 4% would I be better off staying with ReAssure?

Unlikely your existing plan supports drawdown as no Crown Life plans did.   It is more likely that ReAssure would transfer you into their newer plan that supports drawdown using the transfer value.

240v

Thanks very much for your advice dunstonh.

The DOB is correct.

I called them the day after my 55th birthday and stressed that I was over 55 after they quoted the 4% exit fee. I mentioned the  1% cap and they mumbled that the 4% was correct. The person on the phone had to put me on hold to get the exit fee so I suspected they were trying to put me off... or working from a script as you have suggested.

I should have clarified that ReAssure have a drawdown product called 'Retirement Account'.

I'll get them to send me a written statement and will post an update.

240v

An update on this, ReAssure charged 1% for the transfer, and it only took a couple of days.

Paryn

I have been having similar issues with ReAssure since 2020. They lost my new last name and have my maiden name, then got some transfer values incorrect. Contacting them is very hard. This time round as I have been pursuing the matter, they sent me the incorrect information. They sent me paperwork to withdraw the entire lot from them, and thereby incur high taxes! Now they say I have to open a retirement account from which I can draw down the monies. I am very confused. 

I ended up with ReAssure via Barclays - and am not enjoying this at all.

dunstonh

I ended up with ReAssure via Barclays - and am not enjoying this at all.

ReAssure on old Barclays plans are a bit sluggish. I have frequently needed to obtain details from them when doing pension transfers and nearly every time you end up having to ask twice.

They sent me paperwork to withdraw the entire lot from them, and thereby incur high taxes! Now they say I have to open a retirement account from which I can draw down the monies. I am very confused. 

There are many different options available.  They are not there to tell you which is best.  They will just follow your instructions or those from your adviser.