Zurich 'adaptable' pension

lovethereds

Years ago I took out an adaptable pension.  The companies administering the fund has changed numerous times over the years with it now being managed by Zurich.  I stopped paying into this pension about 25 years ago as I was also in line for an occupational pension and the funds didn't seem to be increasing.  I have since retired and in receipt of my occupational pension.  I've just left the Zurich pension on the back burner thinking I would ask for it to commence when I could really do with it.  Come the financial situation affecting everyone I decided to claim my pension from Zurich.  I was sent details of the pension advisory service and following as lengthy phone call decided I would take a draw down pension taking four payments which would keep me within a tax banding.  The fund stands at 45k and if I claimed a lump sum it would take me into a higher tax bracket.  On recontacting Zurich it appears the pension isn't adaptable at all!  The only option I have is to take the whole amount as a lump sum, thereby incurring the higher tax bracket.  Any idea what I can do to avoid this?  I don't even have the option of an annual pension!

JoeCrystal

Is it possible to transfer the fund to more modern pension scheme I wonder?

dunstonh

I stopped paying into this pension about 25 years ago as I was also in line for an occupational pension and the funds didn't seem to be increasing

2000 to 2002 was a prolonged negative period.  Great if you were paying in monthly but not very good for existing values.  The five years that followed pretty much doubled your money.       So, it would have done well if you kept paying.

These old Allied Dunbar plans were well known for having low annual costs (low AMC) but high contribution costs.  They also front loaded a lot of the cost in the early years which created a drag.

On recontacting Zurich it appears the pension isn't adaptable at all! 

The product hasn't been available for over 20 years.  It was adaptable based on the years it was available.       

The only option I have is to take the whole amount as a lump sum, thereby incurring the higher tax bracket. 

That is not the only option. it is one of the options.  Transferring it is another option.   So, transferring it to a modern plans that facilitates options that didn't exist when you bought the original plan would likely be the best thing to do.

I don't even have the option of an annual pension!

Yes you do.  (available via Open Market Option or transfer)

Albermarle

So basically it is a very old pension with limited withdrawal options.
You need to open a new pension and request a transfer in of this one.( in cash is probably the only option.
It can all be done in a few minutes online.
Have a look at 
Vanguard 
Fidelity
Hargreaves Landsdown
A J Bell
Standard Life 
and many more.
Due it not being a huge sum by pension standards, and you want to withdraw it relatively quickly ( over 3 years) I would not worry about minor differences in charges, and I would just keep it in the new pension in cash.