Aviva Pension Transfer Headache

dizco

Hi All

I have a DC Pension Pot of £100,000 ish with Aviva, I now want to withdraw the 25% tax free cash and leave the rest in a drawdown policy until I retire without accessing any of it until then. I qualify in terms of age etc. 

I made an initial enquiry about accessing the TFC, and was told that the policy I held through my workplace (Pearson) didn't allow for drawdown. If I wanted to access the 25%, I'd need to transfer out and into a plan that did. I spoke with someone at Aviva, found a suitable drawdown plan (also with Aviva) and submitted my application.

I've now received an email stating that Aviva are unable to proceed with the transfer because my existing policy "contains valuable benefits which I would lose if I were to transfer the pension. This could be a guaranteed minimum pension (including section 9(2b) rights), a guaranteed annuity rate, or final salary benefit", and recommended I contact an IFA. They also offered their services in that respect. Sufficiently vague in the sense that I don't know what I'd 'lose' in the case of my existing policy. I've asked them to provide clarification.

I have also contacted PensionWise for advice and they have stated that it's possible that my old scheme wasn't as modern as some policies, but I have the right to transfer into a policy that offers drawdown should I choose to.

I've assessed a few providers (Pension Bee, Nutmeg, Hargreaves Lansdown, Nest, Halifax, Interactive Investor), and I'm leaning towards Hargreaves Lansdown.

At this point I'm unsure of what to do. Do I just set the wheels in motion with HL? I'm worried that I'm going to to get the same response from Aviva when I try to transfer.

Any insight you could provide would be much appreciated.

dunstonh

I have also contacted PensionWise for advice and they have stated that it's possible that my old scheme wasn't as modern as some policies, but I have the right to transfer into a policy that offers drawdown should I choose to.

Pensionwise's response is correct but you will still require advice if there is a safeguarded benefit.

I've assessed a few providers (Pension Bee, Nutmeg, Hargreaves Lansdown, Nest, Halifax, Interactive Investor), and I'm leaning towards Hargreaves Lansdown.

If you are going to seek advice, then its best to let the adviser do it. It will be cheaper than using HL.

At this point I'm unsure of what to do. Do I just set the wheels in motion with HL? I'm worried that I'm going to to get the same response from Aviva when I try to transfer.

If there are safeguarded benefits, then it applies to everyone.  Not just Aviva.

xylophone

I've now received an email stating that Aviva are unable to proceed with the transfer because my existing policy "contains valuable benefits which I would lose if I were to transfer the pension. This could be a guaranteed minimum pension (including section 9(2b) rights), a guaranteed annuity rate, or final salary benefit", 

Have you read your existing policy?

Is there a GAR?

Did you at one time have a  Pearson pension that was transferred to  Aviva?

https://www.lcp.com/pensions-benefits/case-studies/the-pearson-pension-plan-completed-the-largest-buy-in-of-2017

Read

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Marcon

dizco said:

Hi All

I have a DC Pension Pot of £100,000 ish with Aviva, I now want to withdraw the 25% tax free cash and leave the rest in a drawdown policy until I retire without accessing any of it until then. I qualify in terms of age etc. 

I made an initial enquiry about accessing the TFC, and was told that the policy I held through my workplace (Pearson) didn't allow for drawdown. If I wanted to access the 25%, I'd need to transfer out and into a plan that did. I spoke with someone at Aviva, found a suitable drawdown plan (also with Aviva) and submitted my application.

I've now received an email stating that Aviva are unable to proceed with the transfer because my existing policy "contains valuable benefits which I would lose if I were to transfer the pension. This could be a guaranteed minimum pension (including section 9(2b) rights), a guaranteed annuity rate, or final salary benefit", and recommended I contact an IFA. They also offered their services in that respect. Sufficiently vague in the sense that I don't know what I'd 'lose' in the case of my existing policy. I've asked them to provide clarification.

If you read the details of your pension, that will tell you. 

Aviva's role is to point out you have something which falls into the category of 'safeguarded benefits' and that given the size of your pot, there is a mandatory requirement for you to receive regulated financial advice before they can release the transfer (even to another of their own funds!).

The fact you don't know what you've got, or understand what you would give up by transferring, is why advice is required in such a situation. 

The title of your post is unfair; Aviva's hands are tied and they are acting entirely correctly.

gm0

You will need to pursue the existing scheme (old documentation, website, secure messaging, letter) - to describe the safeguarded benefits rather than just muttering on frontlne customer services - that they "could exist" and that "advice is recommended".

Taking advice is always recommended (as guidance) - the FCA basically make them do this.

Advice being compulsory is rare - safeguarded benefits - the valuable GAR well above today's interest rates being the classic example. 

Where some members have safeguarded and others don't.  within a brand - then they have heavier risk management scripts at the front desk making noise about "could exist and take advice". For their protection primarily.  But it does alert you to go looking to check.  So there is that.

Asking the helpdesk will likely not get an intelligible response applicable to your exact membership dates and any transfer in. They don't know are not trained on it, may not have access to all required data to tell - and have a "could exist - take advice risk management script to read out".  Not helpful to you in the situation you have reached.  So phoning will be an exercise in frustration.  And you are better writing down your own question than having the call centre person desparate to end the call quickly and taking "notes" of your question which may not be 100%

Within the old scheme admin - the scheme trained and pension transfer specialist team can look it up and will be able to answer the question. 

Which reaches them on workflow as a case to handle.  Seldom are that team reachable on the phone - for any provider as they would do nothing but be on the phone instead of processing access and transfers.  So mostly hidden away behind case management and workflow.  While you talk to the undertrained call centre script waving receptionists.  Who can "take a message" essentially and read the FAQ.

dizco

Thanks for all your comments so far much appreciated. After a bit of digging I've determined that the safeguarded benefit is an RST Underpin. Learning more about this now, and will seek additional financial advice regarding the transfer.

xylophone

https://www.pearson-pensions.com/learning-zone/thinking-of-moving-your-pension/