Aegon s.32 Buyout Plan

WitsEnd101

https://forums.moneysavingexpert.com/discussion/comment/82131357#Comment_82131357

At the end of the day the pension is only about £60k but its annoying that I am paying 1% for their cheapest global tracker fund plus Aegon's slice of fees on top of that. Also the tax free cash (PTFC) is about 40% which is nice.

Have you asked them if an FTA meets the annuity option?

I spoke to someone at Aegon and they said yes but did so without too much conviction. I got the impression they did not know much about FTAs.

If it does then the only thing to consider is the MPAA which would be triggered by an FTA. Do you care about that?

Not an issue as i have already triggered.

TheComputerGuru

My S32 buyout plan finally got paid into my ii SIPP today.

WitsEnd101

https://forums.moneysavingexpert.com/discussion/comment/82163296#Comment_82163296

That's good to know. Did you have to forgo any enhanced tax free cash or get FA advice? Aegon will allow me to move my S32 to my ii SIPP but only with advice or if I forgo any enhanced tax free cash.

TheComputerGuru

https://forums.moneysavingexpert.com/discussion/comment/82164266#Comment_82164266

Yes I did have to forgo the enhanced tax free cash, but I don't plan to take it as a single lump sum anyway.

I will manage it via draw down, this avoiding 40% tax.

WitsEnd101

https://forums.moneysavingexpert.com/discussion/comment/82164269#Comment_82164269

At least Aegon are being consistent with us.

I will be insisting on the enhanced tax free cash which is why I plan to take out a short duration fixed term annuity. Aegon have confirmed I can do this without the added expense of an FA. For info, mine is a relatively small pot.