Taking my Pension ( Part2 )

DE_612183

Ok so currently have a Stakeholder Pension Plan with Halifax - it's an old one and I can only access info about it via the LBG login!

Anyway, rang them up and asked about taking 25% tax free, they said I could do that but the other 75% would be transferred to a Scottish Widows retirement plan - didn't really have a problem with this, but was told that I can't transfer 100% of the pot ( it's only 60k ), but I would have to take the drawdown.

I'm still not sure if / when I want to take the drawdown but if I can only do it by doing the transfer I was thinking get the whole 100% in that retirement account to make it easy to manage - but they seemed to be saying I couldn't do that - which seemed strange?

any ideas if I've got confused or I've confused them!

Albermarle

I presume the retirement account is only designed for the 75% remaining ( crystallised in the jargon) .
So you have to take the 25% tax free before/at the same time as the 75% is transferred.

If you do want the 25% tax free, then the 100% just stays where it is, in the stakeholder.

xylophone

Had you considered transferring the stakeholder to another provider allowing more flexibility?

Dansmam

0000000000

dunstonh

Anyway, rang them up and asked about taking 25% tax free, they said I could do that but the other 75% would be transferred to a Scottish Widows retirement plan - didn't really have a problem with this, but was told that I can't transfer 100% of the pot ( it's only 60k ), but I would have to take the drawdown.

Stakeholders don't support drawdown.  Hence why it needs to be moved to a modern plan that does.

I'm still not sure if / when I want to take the drawdown but if I can only do it by doing the transfer I was thinking get the whole 100% in that retirement account to make it easy to manage - but they seemed to be saying I couldn't do that - which seemed strange?

It's possible they can't do it because their in-house sales force are not allowed to do it.   From a regulatory point of view, if the intention is to move it for drawdown then it is classed as a "conversion".   If it's a transfer but not for drawdown then it's classed as a "switch".  The requirements differ.  For example, under a conversion, if the existing plan doesn't support drawdown then a cost comparison is not required.   Under a switch it would be.   The in-house sales force for SW may only hold internal permissions to do conversions.

Also, remember that they can only sell their own product and it doesn't come out that well on cost comparisons or investment availability and their software is a but clunky.