Withdrawing 25% of pension pot tax free - hidden charges ??

chegsk14

Trying to release 25% of my pension pot tax free, Wesleyan Group are refusing to release the money without me speaking to their financial advisor at a cost of £3000 (3% of pot).
They have also informed me I cannot use any other independent financial advisor, only theirs. Is this legal ? 

Brie

are theirs actually independent?  

what do their T&Cs say?

chegsk14

They don’t appear to be, they have a Wesleyan email address, can’t see anything in the t’s & c’s that relates to this !
Apparently I can take the whole lot without financial advice ?? 

DE_612183

What they are probably talking about is taking 25% and using the other 75% to buy an annuity - is this what you want?

chegsk14

Hi, no want to do a flexi draw down 

DE_612183

and do Wesleyan support this?

if not get the pot transferred to someone who does. 

dunstonh

Trying to release 25% of my pension pot tax free, Wesleyan Group are refusing to release the money without me speaking to their financial advisor at a cost of £3000 (3% of pot).

Wesleyan is a tied sales force.    They only make their product available via their in-house reps.

Usually, they have to move you to a more modern product and only Wesleyan reps can set up a Wesleyan product.

They have also informed me I cannot use any other independent financial advisor, only theirs. Is this legal ? 

It is legal.    Providers can choose to make their product restricted or available to IFAs or D2C (direct 2 client)

However, it doesnt stop you using an IFA or going D2C.   The IFA/D2C method just won't be able to set up a Wesleyan product.  They would use a provider from the whole of market instead.