Getting financial advice from Pension Wise

dealyboy

Fine for those without any knowledge or who wish to know more about their options but should not be required for those who know what they're doing.

The Government's policy seems to be to 'strongly nudge' people to learn how to drive with a driving instructor every time they want to drive.

coyrls

The thing is, if you know what you are doing, you know that you do not have to respond to a strong nudge, generally you just tick a box that says you won't be taking up the Pensionwise option.  I have never had any come back from ticking that box.

dealyboy

coyrls said:

The thing is, if you know what you are doing, you know that you do not have to respond to a strong nudge, generally you just tick a box that says you won't be taking up the Pensionwise option.  I have never had any come back from ticking that box.

So when accessing an AJ Bell SIPP one is presented with this for the first time ...

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Getting help on your options

Your pension is important, and how you access it is a big decision. That's why we suggest you seek professional advice or guidance to help you find the option that works best for you.

Did you know you can get free, impartial guidance from government service Pension Wise? One of their independent pension specialists can talk you through your pension options to help you make a more informed decision. Just visit moneyhelper.org.uk/nudge-public  or call 0800 100 166 to book an appointment. Or get in touch  with us, and we can book an appointment for you.

If you prefer, you can choose to pay for pension advice from an FCA-regulated financial adviser. It's also a good idea to shop around for pension providers – saving into your SIPP with AJ Bell doesn’t necessarily mean we’re the right provider to access it with too.

Please answer the following questions and choose your pension option below:

Have you received guidance from Pension Wise?

Yes

No

Have you received advice from a regulated financial adviser?

Yes

No

If your personal circumstances or your SIPP’s value have changed significantly since you spoke to an adviser or Pension Wise, you may need to consider getting new advice or guidance.

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Watch out for pension scams. Fraudsters often try to con the over 55s into moving their pension to fraudulent or badly managed schemes or investments. Be wary of anyone who approaches you by email, phone, text or in person about withdrawing your pension pot. For more information, visit Scam Smart.

Your options

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... what's not to like from a Self Invested Personal Pension execution only service?

dunstonh

The thing is, if you know what you are doing, you know that you do not have to respond to a strong nudge, generally you just tick a box that says you won't be taking up the Pensionwise option.  I have never had any come back from ticking that box.

There is actually further nudges that are becoming more common.

For example, if you transfer to a pension that accepts overseas investments the ceding scheme is meant to do a risk analysis to decide if the transfer is safe to do or not.  If they have concerns, they are required to refer the person to moneyhelper (pensionwise).   

What is classed as overseas investments?   Investment trusts and ETFs as they are domiciled in Ireland or Luxembourg..   So, any pension that offers those, even if not being used, can now be blocked by the ceding scheme and force you to use moneyhelper.

The retail providers are using common sense.   Pretty much every mainstream retail provider where both sides use Origo will let it through.   However, the problems are, as is often the case, with the professional administrators for occupational DC schemes.  They are not doing any risk analysis (despite going through the steps that make you think they are) and the minute a receiving scheme is flagged as amber for accepting overseas investments, they will disregard all information told to them and will tell the person they need to use moneyhelper.  They do not apply any discretion.

This is causing a major headache for SIPPs and platform providers (which are the bulk of the retail providers for new business nowadays) and they are trying to get the FCA to do something about it as these types of pension transfers are now taking over 6 months to complete.

coyrls

Yes, that does sound poor.  I was basing my comments on my experience with retail platforms, I moved my occupational DC scheme 8 years ago before these nudges.