With-Profits Pension Maturity Options

mjb2112

My Pru With-profits pension matures next year. I do not want to take any income or lump sum from it at that time, and wondered what my options would be. The information they provide on not touching it, are not very forthcoming, I will discuss it with them, but to be pre-armed, wondered what the options are likely to be, for example, could it be transferred to a SIPP.

Many thanks in advance

tacpot12

Options are to leave it where it is to continue growing some more, buy an annuity with it at the maturity date, or move the money to another provider. Bear in mind that anything you do after the maturity date means that there is no guarantee that the Pru will not apply a market reduction. However, market reductions are pretty rare. You might need to move the money from the current product to a new Pru product if you want to draw down on it, if the current product doesn't allow drawdowns.  

I had a friend who left the money with the Pru for about a year after their maturity date, and then started to draw down on it. The Pru put them in touch with a tied financial adviser that arranged the product switch and recommended a safe withdrawal rate for them. Not sure what they paid for this service though.  
 

dunstonh

My Pru With-profits pension matures next year.

On that basis, that makes you 74 as all Pru pensions, apart from their modern plan, have to mature by 75.     Unless you are referring to the statement projection age which isn't a maturity date/age but just the current age used for projections.

 I do not want to take any income or lump sum from it at that time, and wondered what my options would be.

If you are 74, then you will need to transfer it to a modern pension that doesn't get restricted by the old 75 rule.
If you are just referring to the statement projection age and are not 74, then you defer it or let it auto-defer.

 The information they provide on not touching it, are not very forthcoming, I will discuss it with them, but to be pre-armed, wondered what the options are likely to be, for example, could it be transferred to a SIPP.

If not 74, then the deferment option should appear in their letters.
If you are 74, then you have to transfer it.

The Pru put them in touch with a tied financial adviser that arranged the product switch and recommended a safe withdrawal rate for them. Not sure what they paid for this service though.  

Pru's in-house service is non-advised and is very expensive and you end up in their dated "modern" product.

mjb2112

Thanks for the replies so far.

dunstonh, thanks for your input, I will be 61 at the time, I have been given a pack by prudential in regard to the options available, but not much "meat on the bones" of what they involve, particularly any deferment options.

dunstonh

mjb2112 said:

Thanks for the replies so far.

dunstonh, thanks for your input, I will be 61 at the time, I have been given a pack by prudential in regard to the options available, but not much "meat on the bones" of what they involve, particularly any deferment options.

Thanks for the clarification. This means your pension is not maturing; it is just getting close to the age of the currently selected scheme.     It can be deferred again and again right up to age 75.

The packs they send out get more detailed the closer you get to the current selected age.   However, the option you want is deferment.   If you do nothing at all, it will automatically defer.