Aegon ARC pension fund

PaulCooper

I've got a SIPP with Aegon, they refer to it as ARC. it's got just over £100k in it, a fair portion of it coming from opting out (I've added money to it also) It's all uncrystallised, when the time comes & I want to crystallise the fund i.e. take 25% tax free, will I have to have advice from an IFA/FA? In other words will I have to pay someone to tell Aegon that I've received statutory advice?
Thanks
Paul

Pat38493

Not with a SIPP no.  

You might have to fill in some forms and you might have to tell them you have spoken to Pensionwise (or you have opted not to do so).

What do you mean by "from opting out"?

Linton

PaulCooper said:

I've got a SIPP with Aegon, they refer to it as ARC. it's got just over £100k in it, a fair portion of it coming from opting out (I've added money to it also) It's all uncrystallised, when the time comes & I want to crystallise the fund i.e. take 25% tax free, will I have to have advice from an IFA/FA? In other words will I have to pay someone to tell Aegon that I've received statutory advice?
Thanks
Paul

The legal requirement to consult an IFA only applies when transferring DB pensions (eg "final salary") or a DC pension with certain guarantees to a DC pension (where you hold a pot of money), say a SIPP.    Your pension is already DC and you arent transfering anything so there is no IFA requirement.

Once you reach 55, rising to 57 in 2028, you can legally take your money in whatever way you want, subject to the drawdown rules.  However some pension providers may not provide all the facilities you want.  If so you can easily transfer your pension to a provider that better meets your needs.

xylophone

from opting out"?

Contracting Out ?

https://techzone.abrdn.com/public/pensions/Tech-guide-contracting-out

dunstonh

I've got a SIPP with Aegon, they refer to it as ARC.

Aegon Retirement Choices is their product "marketing" name.    ARC is more fund like the old fund supermarkets than a true SIPP.

 It's all uncrystallised, when the time comes & I want to crystallise the fund i.e. take 25% tax free, will I have to have advice from an IFA/FA? In

No.   However, do you have a reason for blowing all the 25% in one go?  if yes, then fair enough but if not, then why take it?

In other words will I have to pay someone to tell Aegon that I've received statutory advice?

There is no statutory advice requirement.

, a fair portion of it coming from opting out

I suspect you dont mean opting out but contracting out.    Opting out means not joining a workplace pension.

PaulCooper

Hi
You're all correct, contracted out, not opted out, silly me!
I'm 67, so sooner or later I'll crystallise it, no great need for the 25% at the moment. I've got circa £450k elsewhere in another SIPP. It won't be that long before we start considering IHT & the generosity of pension fund money sitting outside our estate and taking approx £25k of untaxed money is quite appealing. I would have less need to take money from the other fund which is fully crystallised.
Just didn't want the surprise of needing advice if we make the decision to crystallise.
Thanks for the answers
Paul

dunstonh

I'm 67, so sooner or later I'll crystallise it, no great need for the 25% at the moment.

In which case, you don't take it until you need it or there is another justification.

. It won't be that long before we start considering IHT & the generosity of pension fund money sitting outside our estate and taking approx £25k of untaxed money is quite appealing.

So, taking it on drip may be the best option....

Just didn't want the surprise of needing advice if we make the decision to crystallise.

Although the cost of advice could also save you money.

Steve_666_

You don't see to have a plan or a reason to use this money, so for me you should leave it there. Taking  cash out of a pension and putting it into an ISA is tax neutral as long as you are always a 20% tax payer. If you for see a time where you might need a larger sum, one that if you withdrew fully  from a pension would put you into the 40% bracket, then it would be good advice to withdraw smaller amounts in the preceding years and save into an ISA. Generally you can invest in the same objects in an ISA as you can in a SIPP. Putting the money elsewhere outside a tax free wrapper, savings accounts, trading accounts for shares and funds runs the risk of paying more tax .

The other reason to take small sums regularly as UFPLS might be to use up your personal allowance.

PaulCooper

Thanks for comments everyone. It probably boils down to the tax we pay, in this life or the next!
Paul