Pru - M&G Personal Pension

kassy64

Hi, my wife (60 and retired) has a Pru (M&G) Personal Pension Scheme with a value of about £80k.
She would like to take out small annual lump sums of about £10k per year (until it runs out obviously) for pocket money etc.
She had her retirement pack through a while back and this option is given in the pack, however now she has actually come to contact them with the request this option is according to call agents not possible or they are not being up front that it is an option. She is being told to take financial advice for a drawdown. Should she persevere and insist that she is able to take small annual lump sums without taking any financial advice (which isn't really required, we understand the tax implications and that it will not last forever). They seem to be very unwillingly to allow my wife to access her 'pot', and i thought things were easier these days. Any advice gratefully received.
Thanks

dunstonh

She had her retirement pack through a while back and this option is given in the pack, however now she has actually come to contact them with the request this option is according to call agents not possible or they are not being up front that it is an option. 

Most legacy Pru plans do not support drawdown and need to be transferred to a modern plan that does.   So, have limited drawdown functionality (mainly UFPLS).

. She is being told to take financial advice for a drawdown. Should she persevere and insist that she is able to take small annual lump sums without taking any financial advice (which isn't really required, we understand the tax implications and that it will not last forever). They seem to be very unwillingly to allow my wife to access her 'pot', and i thought things were easier these days. Any advice gratefully received.

You can try as much as you like but if the product doesn't offer it, then you are just wasting your time.

They are not unwilling to allow your wife to do it with that product. It just needs moving to a product that allows it.   Things are easier nowadays.  However, your wife doesn't have a product that was set up "nowadays".  

However, don't do it via Pru's inhouse salesforce. its non advised and costs more than using an adviser.  If you don't want an adviser, then use a DIY provider.

xylophone

Has your wife had a Pension Wise interview?

See

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Presumably there is no Guaranteed Annuity Rate?

Is the pension provider saying that the existing plan is not set up for UFPLS/ flexible drawdown?

If so, she will need to transfer to a modern plan that offers the options she requires.

kassy64

dunstonh said:

She had her retirement pack through a while back and this option is given in the pack, however now she has actually come to contact them with the request this option is according to call agents not possible or they are not being up front that it is an option. 

Most legacy Pru plans do not support drawdown and need to be transferred to a modern plan that does.   So, have limited drawdown functionality (mainly UFPLS).

. She is being told to take financial advice for a drawdown. Should she persevere and insist that she is able to take small annual lump sums without taking any financial advice (which isn't really required, we understand the tax implications and that it will not last forever). They seem to be very unwillingly to allow my wife to access her 'pot', and i thought things were easier these days. Any advice gratefully received.

You can try as much as you like but if the product doesn't offer it, then you are just wasting your time.

They are not unwilling to allow your wife to do it with that product. It just needs moving to a product that allows it.   Things are easier nowadays.  However, your wife doesn't have a product that was set up "nowadays".  

However, don't do it via Pru's inhouse salesforce. its non advised and costs more than using an adviser.  If you don't want an adviser, then use a DIY provider.

Hi, thanks for the response. The 'pack' sent through clearly states that taking small lump sums out is an option (or is this just standard literature sent out to everyone?), they have also stated that a drawdown is possible but cant be done without using a financial advisor. Can you explain what a DIY provider is exactly, thanks

xylophone

And has your wife obtained a state pension forecast?

https://www.gov.uk/check-state-pension

kassy64

xylophone said:

Has your wife had a Pension Wise interview?

See

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Presumably there is no Guaranteed Annuity Rate?

Is the pension provider saying that the existing plan is not set up for UFPLS/ flexible drawdown?

If so, she will need to transfer to a modern plan that offers the options she requires.

Yes, late last year and they were happy with her pension plan going forward and no mention of small lump sums being possible. Would she be eligible for another interview?

kassy64

xylophone said:

And has your wife obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Yes, she will get the full state pension at 67, mind me asking what the relevance of that would be as is anticipating using her Pru up prior to state pension kicking in (if she is ever able to access it)

xylophone

mind me asking what the relevance of that would be 

Just a check that she is eligible to receive full NSP without any necessity for voluntary contributions.

If you wife's existing pension plan does not offer the flexibility she requires or only offers it after taking advice that she does not want to 

take, she could consider a transfer to one of the Do it Yourself platforms for example Hargreaves Lansdown/ Fidelity/AJ Bell etc.

Example

https://www.hl.co.uk/free-guides/guide-to-transferring-a-pension

• Freedom at retirement - With the HL SIPP, you're free to choose from all the main retirement options.

https://www.hl.co.uk/retirement/preparing/retirement-options

xylophone

You might be interested in this thread

https://forums.moneysavingexpert.com/discussion/6367764/prudential-personal-pension-total-confusion/p1

kassy64

xylophone said:

You might be interested in this thread

https://forums.moneysavingexpert.com/discussion/6367764/prudential-personal-pension-total-confusion/p1

Thankyou, will have a read. 

dunstonh

 The 'pack' sent through clearly states that taking small lump sums out is an option (or is this just standard literature sent out to everyone?)

Retirement packs are generic.  Not plan specific.    

they have also stated that a drawdown is possible but cant be done without using a financial advisor. 

If you want to use Pru, they only retail via IFAs or their in-house salesforce.  They don't offer Direct to consumer (DIY)

Can you explain what a DIY provider is exactly, thanks

Providers either offer their products via intermediaries (advisers or others).  Or direct to consumer where they give no advice, no opinion and you choose everything (DIY).     There are a handful that straddle both but in most cases they tend to fudge both.  If you want to do it without an adviser, you are best to focus on providers that cater for the DIY market.