How do I find a pension provider who provides pension drawdown without advice?

Madabka

Hi

The PRU have informed me that I can’t drawdown my pension pot with them without having an account with a financial advisor. I’m reluctant to do this as it’s not a huge amount (under £30,00) and also most financial advisors aren’t interested in that amount of money.

Can anyone recommend a pension provider who I can transfer my pension pot to who would then let me drawdown my money without having to use and pay a financial advisor. I have a work pension already and will be getting my State Pension soon. I really just want that money from pension pot with the PRU for some house improvements etc.

I have tried looking at sites that compare transferring to a pension provider but it seems awfully complicated.

Thanks for any advice.

MallyGirl

If it is under £30k and you just want the money out then you could transfer to somewhere like HL and make 3 small pot draw downs. You would pay tax on 75% of it but it wouldn't invoke MPAA this way

Albermarle

Transferring a DC pension is normally very easy with a modern provider and can all be sorted out on line for free.
It can be complicated getting into the weeds of how each provider charges etc but for this amount of money which you are going to withdraw anyway.
The MPAA mentioned above, means that if you withdraw all the pot then you will be limited to adding a max of £10K to a pension per year in future. this includes tax relief and employer contributions. If this is an issue, then the workaround is as suggested above with HL.
Otherwise you could look at Fidelity; AJ Bell or Vanguard + others.

dunstonh

The PRU have informed me that I can’t drawdown my pension pot with them without having an account with a financial advisor. I’m reluctant to do this as it’s not a huge amount (under £30,00) and also most financial advisors aren’t interested in that amount of money.

Pru has an in-house sales team that will do this. I am not suggesting you use them as they are expensive and do it non-advised.       However, the fact they are telling you that you need an adviser suggests that you may have safeguarded benefits.        Even though the fund is under £30k and you are not obliged to take advice, financial firms cannot use that £30k rule to get around their authorisations.  So, Pru will often try to get their own sales staff to do drawdown cases apart from where there are safeguarded benefits where they tell you to use an adviser instead.

So, it may be worth checking if you do have any safeguarded benefits.

xylophone

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

If no SB, have you had a Pension Wise appointment?

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

Otherwise, Hargreaves Lansdown might suit.

https://www.hl.co.uk/pensions/transfer-to-the-sipp?theSource=PCHLS&Override=1&sitelink=C&gad_source=1&gclid=EAIaIQobChMI_NPfsdy1hgMVVpNQBh2_fw90EAAYASABEgKvivD_BwE

Madabka

Thanks for all the advice. I’ve emailed the PRU to double-check about any safeguarded benefits. I have actually had a Pension Wise appointment so I’m sure that I want to take all my money out. I’ve also emailed Hargreaves Lansdown to make sure that they will let me draw down the money without needing a financial advisor.

dunstonh

Madabka said:

Thanks for all the advice. I’ve emailed the PRU to double-check about any safeguarded benefits. I have actually had a Pension Wise appointment so I’m sure that I want to take all my money out. I’ve also emailed Hargreaves Lansdown to make sure that they will let me draw down the money without needing a financial advisor.

A lot of legacy plans don't support drawdown but will support UFPLS.   As you plan to do UFPLS rather than drawdown, you should check to see if that option is available to you.  I have seen plenty of Pru plans which offer UFPLS but not drawdown.

BIGFATBALOO

dunstonh said:

The PRU have informed me that I can’t drawdown my pension pot with them without having an account with a financial advisor. I’m reluctant to do this as it’s not a huge amount (under £30,00) and also most financial advisors aren’t interested in that amount of money.

Pru has an in-house sales team that will do this. I am not suggesting you use them as they are expensive and do it non-advised.       However, the fact they are telling you that you need an adviser suggests that you may have safeguarded benefits.        Even though the fund is under £30k and you are not obliged to take advice, financial firms cannot use that £30k rule to get around their authorisations.  So, Pru will often try to get their own sales staff to do drawdown cases apart from where there are safeguarded benefits where they tell you to use an adviser instead.

So, it may be worth checking if you do have any safeguarded benefits.

What safe guarded benifits please ? 

molerat

BIGFATBALOO said:

What safe guarded benifits please ? 

https://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/

dunstonh

Safeguarded benefits are a range of potentially very valuable guarantees that would be lost on transfer.  Guaranteed annuity rates and guaranteed minimum pensions are two of the most common.   Final salary underpins less common.

Roger175

I had a truly awful experience doing a Transfer out of Pru recently. They are just so hopeless, I couldn't even to begin to set out the story without taking pages to do so and boring everyone to death. However, one point of interest was that they said they couldn't do it using Origo and no matter how many times I asked I couldn't get a straightforward answer why not. One of their advisors suggested it was because I might have had some safeguarded benefits ... once it had all eventually gone through I studied all the paperwork and found that the only thing referred to as a safeguarded benefit was that I could access the pension at age 55. So could anybody else of my age and actually being 60 meant this was of no use to me whatsoever. 

Just prepared yourself for a shedload of hassle doing anything with Prudential, they are totally unbelievably useless, with antiquated systems and miss every single deadline without fail.