Prudential pension 25% drawdown

amethystlady

Similar to another poster this week I want to draw down 25% of my prudential pension, i've also been advised by Prudential to contact an IFA. Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks
 

dunstonh

, i've also been advised by Prudential to contact an IFA.

Thats unusual.  They normally try to pass you to their in-house sales team.  The exception being if there are safeguarded benefits as they are not authorised in that area.

So, does yours have safeguarded benefits, and if so, what are they?

Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks

I suspect must IFAs will not be willing to give advice if this plan is in isolation.     
a) overriding most safeguarded benefits requires pension transfer specialist permissions.   Thats an expensive and high risk transaction for an adviser.  
b) if its just a GAR, then it doesnt required pension transfer specialist permissions but its a high enough risk that the adviser firm would need to declare it each year to their PI insurer for the rest of their existence and be paying just that bit more because of it.    The value of it doesn't really make the risk taken worthwhile.

If you do find an adviser willing, the pricing will likely be high, mainly to act as a passive blocker.  

If there are no safeguarded benefits, you do not need an IFA.

amethystlady

dunstonh said:

, i've also been advised by Prudential to contact an IFA.

Thats unusual.  They normally try to pass you to their in-house sales team.  The exception being if there are safeguarded benefits as they are not authorised in that area.

So, does yours have safeguarded benefits, and if so, what are they?

Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks

I suspect must IFAs will not be willing to give advice if this plan is in isolation.     
a) overriding most safeguarded benefits requires pension transfer specialist permissions.   Thats an expensive and high risk transaction for an adviser.  
b) if its just a GAR, then it doesnt required pension transfer specialist permissions but its a high enough risk that the adviser firm would need to declare it each year to their PI insurer for the rest of their existence and be paying just that bit more because of it.    The value of it doesn't really make the risk taken worthwhile.

If you do find an adviser willing, the pricing will likely be high, mainly to act as a passive blocker.  

If there are no safeguarded benefits, you do not need an IFA.

Thank for your feedback, I really appreciate it.  From what I can make out I've a 'with profits fund' there's no mention of safeguarded benefits in the annual statement.  Does that help/make any difference?

dunstonh

amethystlady said:

dunstonh said:

, i've also been advised by Prudential to contact an IFA.

Thats unusual.  They normally try to pass you to their in-house sales team.  The exception being if there are safeguarded benefits as they are not authorised in that area.

So, does yours have safeguarded benefits, and if so, what are they?

Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks

I suspect must IFAs will not be willing to give advice if this plan is in isolation.     
a) overriding most safeguarded benefits requires pension transfer specialist permissions.   Thats an expensive and high risk transaction for an adviser.  
b) if its just a GAR, then it doesnt required pension transfer specialist permissions but its a high enough risk that the adviser firm would need to declare it each year to their PI insurer for the rest of their existence and be paying just that bit more because of it.    The value of it doesn't really make the risk taken worthwhile.

If you do find an adviser willing, the pricing will likely be high, mainly to act as a passive blocker.  

If there are no safeguarded benefits, you do not need an IFA.

Thank for your feedback, I really appreciate it.  From what I can make out I've a 'with profits fund' there's no mention of safeguarded benefits in the annual statement.  Does that help/make any difference?

Safeguarded benefits is a catchall term for a range of guarantees,  These guarantees are often valuable but missed by people as they don't appear unless asked about or told about if you try to do drawdown or transfer out.

If there were no safeguarded benefits, Pru would try and shove you onto their salesforce and not an IFA.  Hence why I think it is possible you have a safeguarded benefit.    The only way to know is to contact them and ask the question "are there any safeguarded benefits"

If there are not then you dont need an adviser to transfer it to a DIY provider of your choice and then do drawdown with that new provider.

Marcon

amethystlady said:

Similar to another poster this week I want to draw down 25% of my prudential pension, i've also been advised by Prudential to contact an IFA. Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks
 

You say you've been 'advised' by the Pru to contact an adviser, which isn't the same thing as insisting you do. Are you sure they have said you 'must' do so, rather than 'recommending' it? See https://www.mandg.com/pru/customer/en-gb/retirement-planning/approaching-retirement

sevenhills

Marcon said:

amethystlady said:

Similar to another poster this week I want to draw down 25% of my prudential pension, i've also been advised by Prudential to contact an IFA. Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks
 

You say you've been 'advised' by the Pru to contact an adviser, which isn't the same thing as insisting you do. Are you sure they have said you 'must' do so, rather than 'recommending' it? See https://www.mandg.com/pru/customer/en-gb/retirement-planning/approaching-retirement

I was with the Pru and I had to pay a sizable amount, which came as a surprise 

Qyburn

Marcon said:
You say you've been 'advised' by the Pru to contact an adviser, which isn't the same thing as insisting you do. Are you sure they have said you 'must' do so, rather than 'recommending' it? 

That's a good point. Even my Aviva annual statements used to include a suggestion that I might want to engage a "regulated financial adviser". I think sometimes this just their way of emphasising that they are not themselves providing "advice". 

dunstonh

sevenhills said:

Marcon said:

amethystlady said:

Similar to another poster this week I want to draw down 25% of my prudential pension, i've also been advised by Prudential to contact an IFA. Any advice on typical fees to expect to make this happen would be helpful.  The pension pot value is c£31k. Thanks
 

You say you've been 'advised' by the Pru to contact an adviser, which isn't the same thing as insisting you do. Are you sure they have said you 'must' do so, rather than 'recommending' it? See https://www.mandg.com/pru/customer/en-gb/retirement-planning/approaching-retirement

I was with the Pru and I had to pay a sizable amount, which came as a surprise 

Only if you use their in-house sales force.  If you don't use them then you don't pay anything (i.e. transfer to a DIY provider).

That's a good point. Even my Aviva annual statements used to include a suggestion that I might want to engage a "regulated financial adviser". I think sometimes this just their way of emphasising that they are not themselves providing "advice". 

According to the Pru terms of business, their in-house sales force do not provide advice.      Which is strange as I would love to know what they are doing for the ongoing advice charge they take from people.

Albermarle

Qyburn said:

Marcon said:
You say you've been 'advised' by the Pru to contact an adviser, which isn't the same thing as insisting you do. Are you sure they have said you 'must' do so, rather than 'recommending' it? 

That's a good point. Even my Aviva annual statements used to include a suggestion that I might want to engage a "regulated financial adviser". I think sometimes this just their way of emphasising that they are not themselves providing "advice". 

Yes this does happen, but we have regular posters on here with Pru pensions, surprised to find out they have to cough up 3% to a Pru advisor just to start drawdown.

Albermarle

From what I can make out I've a 'with profits fund'

To be clear this is just the fund your money is invested in. It has no bearing on the rest of the points being made in previous posts.

dunstonh

Here is the Pru terms of business:
https://www.mandg.com/dam/pru/shared/documents/en/invs6686.pdf

First page is key.   restriction in products we offer box and no advice given in services we'll provide you with box.