Pension Transfer Issue

adamni2006

Hi, I'm in the process of transferring my pension pot from LV to Hargreaves Lansdown, to make use of the cashback deal. As I was just above the £100K I thought it best to move the money into cash within my pension so as not to risk losing anything on me investment. However it looks like they've withdrawn my whole pension and therefor now subject to tax. I didn't want to do that - I wanted the money to remain in the pension so I can transfer the whole lot. Is there anything I can do?

NoMore

Contact lv and confirm what has happened and is there anything they can do to reverse it. 

dunstonh

I thought it best to move the money into cash within my pension so as not to risk losing anything on me investment.

IIRC, the LV pension doesn't have a cash facility.    So, maybe that is where the confusion started.  i.e. "I want to change my pension to cash" could be interpreted as you wanting to draw it out.   Although it seems very strange that you didn't pick up the fact you were drawing the pension as LV would have gone through the risk warnings and tax position before getting your agreement to proceed.

Luckily, the first benefit crystallisation event you do has a cancellation period and you can reverse it within that time period.

adamni2006

Thank you - I did state cash fund - but no risk warnings were communicated to me. All done via email

artyboy

If LV really has withdrawn the pension (which I suspect is very unlikely), then they would already have had to withhold tax on it - is that what you are seeing, a very reduced figure remaining?

More likely it's still in the pension wrapper but as uninvested funds pending transfer out.

But as previously stated, you need to get in touch with them to be sure.

For that matter, are you even 55 or older? If not there's no legal way (barring a few legacy edge cases) that this could have been taken out of your pension ...

adamni2006

Good news. Apparently there is a bug in the customer portal, in that it doesn't show any money uninvested - but should do. I was required to leave a minimum of £3000 invested in a fund, and that is the only figure showing. Having spoken to LV they have confirmed that the total amount is still in the pension and are sending me a full statement for proof. 
In any case I would have thought I'd need to sign something in the case of withdrawing any money due to tax implications and of course the triggering of the minimum annual allowance of £10000 - which would have also affected my works pension - wow - this could be very dangerous. There is no way I would withdraw anything without a financial advisor. I do find LV a faff - need to phone them if you want to add money, need to phone them and email to change funds - it seems more geared toward use for financial advisors.
Thanks for your advice - I think I'll be able to sleep better now 

dunstonh

In any case I would have thought I'd need to sign something in the case of withdrawing any money due to tax implications and of course the triggering of the minimum annual allowance of £10000 - which would have also affected my works pension - wow - this could be very dangerous. There is no way I would withdraw anything without a financial advisor. I do find LV a faff - need to phone them if you want to add money, need to phone them and email to change funds - it seems more geared toward use for financial advisors.

LV is an old fashioned provider with old fashioned software.

In respect of the feared withdrawal, what you now say makes much more sense as the risk warnings, tax position, your bank details etc would be needed to be given before a withdrawal could be made.

penners324

Surely it's easier to request the transfer whilst it's still invested then let LV deal with moving it to cash then transferring it?

You'll be missing out on some weeks of investment returns which could vastly out weigh the cashback bung from HL

Albermarle

penners324 said:

Surely it's easier to request the transfer whilst it's still invested then let LV deal with moving it to cash then transferring it?

You'll be missing out on some weeks of investment returns which could vastly out weigh the cashback bung from HL

As above, normally you would arrange the transfer via HL and ask for a cash transfer ( presumably an in specie transfer would not be possible). LV would then cash in your investments shortly before transferring them.
All cash transfers are vulnerable to market movements ( can be positive or negative), so it is best to be in cash for as short a time as possible to be on the safe side.

adamni2006

Yes - it was teetering on the level needed to qualify for the cash back - and if during the transfer it dropped below then I wouldn't have qualified. Bit of a gamble I know, but looks like I managed to get everything into cash while it had peaked (luckily). Also it is solely a high risk UK fund - and with the current state of things at the moment, government etc - I know it doesn't necessarily impact on investments - I thought it more of a gamble to leave it in the fund. HL have just received the signed documentation so may take around a month

adamni2006

The money that appeared to have been withdrawn is now showing in the Trustees Bank Account - 1% below the bank of England - so while the transfer is going through - it will at least be making something. Also showing crystallization at 0% - so worry over