Small pot transfer from DB occupational pension into SIPP

Albermarle

sxgirl said:

Even if it is the fact that the AVC is linked with a DB pension, seems to be causing the usual nervousness . Thanks Albemarle - do you know of any SIPP providers who don’t have the same nervous policy? If I can’t persuade HL, and don’t swiftly switch to a new SIPP, my only option would be to take the whole pot out as cash from my occ pension, which I think will cost me about £425 in tax. If I don’t draw anything out of my pension this year, I will lose the benefit of this year’s personal tax allowance

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I have no idea which providers would be more accommodating. I know Fidelity tend to be cautious in these matters and I guess Vanguard might be the same, but you could try AJ Bell as a starter.

sxgirl

Albermarle said:There is a 'quote' button at the bottom of each post    

I have no idea which providers would be more accommodating. I know Fidelity tend to be cautious in these matters and I guess Vanguard might be the same, but you could try AJ Bell as a starter.

Double thanks Albemarle! 

I’d started to look at AJBell having seen previous recommendations on here. I am now a bit nervous about getting it done in time and being certain they won’t raise the same query. I think it may actually be better to just take the whole DC element from my current provider immediately. Better to pay the £425 tax this year than miss out on c£11,500 worth of personal allowance. 

dunstonh

xylophone said:

Thanks Malthusian - apart from the fact that I don’t know if I actually have this option from my provider (I am checking, but they did refer to it as a ‘separate DC fund’) 

If you don't have the option (the DC element is completely separate from the DB element), what exactly is HL's problem?

Because without the audit trail on the advice process to verify that, they do not know.  Large corporates have to have policies in place about what to do in a scenario and when.  This also helps them when pricing their services.    

Linking of the AVC to the main scheme to take the tax free cash is a valuable benefit.   Not many would want to give that up as its financially unlikely that alternatives would be better.    So, the reason they have the rule is logical

sxgirl

xylophone If you don't have the option (the DC element is completely separate from the DB element), what exactly is HL's problem?

They say I could use the AVC pot to get more tax free cash when I reach NRA. (If I wanted to trade some of my db pension for cash, which I don’t. It’s only projected to be about £1,600 pa anyway. )

Albermarle

sxgirl said:

xylophone If you don't have the option (the DC element is completely separate from the DB element), what exactly is HL's problem?

They say I could use the AVC pot to get more tax free cash when I reach NRA. (If I wanted to trade some of my db pension for cash, which I don’t. It’s only projected to be about £1,600 pa anyway. )

Good to be aware that to buy a guaranteed pension of £1600 pa at age 60 with some kind of inflation linking would cost about £40K