Cannot get pension pot without IFA, cannot pay IFA without pension pot…help please?

teapotbot

Slightly stuck as almost penniless. I have about 40K in an uncomplicated Pru pension pot and need to take it all.
Pru won’t release it until I have the form signed by an IFA and sent to them as it is over 30K.
I don’t have any funds to pay for an IFA so am in a tough Catch 22 situation here.
I am not resident in UK and have lived in France for the last 18 years. I cannot afford to travel to UK.
My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

I would welcome any practical advice on how to move this situation forwards please.

Marcon

teapotbot said:

Slightly stuck as almost penniless. I have about 40K in an uncomplicated Pru pension pot and need to take it all.
Pru won’t release it until I have the form signed by an IFA and sent to them as it is over 30K.
I don’t have any funds to pay for an IFA so am in a tough Catch 22 situation here.
I am not resident in UK and have lived in France for the last 18 years. I cannot afford to travel to UK.
My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

I would welcome any practical advice on how to move this situation forwards please.

This 'uncomplicated' pension sounds as if it has 'safeguarded benefits' (a promise of some kind, such as a guaranteed annuity rate) - is that definitely the case? Insurance companies have been known to get these things wrong...

Hoenir

teapotbot said:

My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

Unfortunately that's not how the real world works. Given your situation you may be better by drawing the benefits.

dunstonh

 I have about 40K in an uncomplicated Pru pension pot and need to take it all.
Pru won’t release it until I have the form signed by an IFA and sent to them as it is over 30K.

If it was £40k in an uncomplicated pension (i.e .no safeguarded benefits) then you would not need an IFA.

Pru's FCA authorisations allow them to offer their drawdown product as long as there are no safeguarded benefits.   However, even then, they probably couldnt offer it to you as you are in the EU.

My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

I suspect most IFAs would like it to be that easy too.   However, it isn't like that. Both the EU (in respect of post Brexit punishment by refusing the offering of services to EU residents) and the UK (for putting a £30k limit on plans with safeguarded benefits) are to blame.

If you are after full withdrawal on a plan with safeguarded benefits, then its also classed as a high risk transaction and most IFAs are not going to want to take on that risk.

So, its a combination of issues.    However, you are not prevented from taking the tax free cash and an annuity on the plan.

Veteransaver

Do you know the transfer value of the pension? Is it a recent valuation? I only ask as I recently got a transfer value on mine and it had more than halved since 2021. Due to increasing interest rates / annuity rates
I was going to transfer out but it doesn't make sense now with the safeguarded benefits and the lower value (and an IFA probably wouldn't agree to it either)

Marcon

Veteransaver said:

Do you know the transfer value of the pension? Is it a recent valuation? I only ask as I recently got a transfer value on mine and it had more than halved since 2021. Due to increasing interest rates / annuity rates
I was going to transfer out but it doesn't make sense now with the safeguarded benefits and the lower value (and an IFA probably wouldn't agree to it either)

IFA doesn't have to agree. The requirement is to 'receive' advice, not follow it (although probably wise to take due heed before making any decisions...).

dunstonh

Do you know the transfer value of the pension? Is it a recent valuation? I only ask as I recently got a transfer value on mine and it had more than halved since 2021

Are you referring to a DB pension (the only asset type to go down as much as that is index linked gilts. Its unlikely you were 100% invested in those).  That is very different to what the OP is referring to.

teapotbot

Marcon said:

teapotbot said:

Slightly stuck as almost penniless. I have about 40K in an uncomplicated Pru pension pot and need to take it all.
Pru won’t release it until I have the form signed by an IFA and sent to them as it is over 30K.
I don’t have any funds to pay for an IFA so am in a tough Catch 22 situation here.
I am not resident in UK and have lived in France for the last 18 years. I cannot afford to travel to UK.
My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

I would welcome any practical advice on how to move this situation forwards please.

This 'uncomplicated' pension sounds as if it has 'safeguarded benefits' (a promise of some kind, such as a guaranteed annuity rate) - is that definitely the case? Insurance companies have been known to get these things wrong...

Thank you for your response. I will gather as much detail as possible, including the technical name of the pension and revert.

teapotbot

dunstonh said:

 I have about 40K in an uncomplicated Pru pension pot and need to take it all.
Pru won’t release it until I have the form signed by an IFA and sent to them as it is over 30K.

If it was £40k in an uncomplicated pension (i.e .no safeguarded benefits) then you would not need an IFA.

Pru's FCA authorisations allow them to offer their drawdown product as long as there are no safeguarded benefits.   However, even then, they probably couldnt offer it to you as you are in the EU.

My ideal scenario would be a phone call with an IFA who would complete the paperwork for the Pru and send it to them, then issue an invoice for an agreed amount but giving me time to get the money from the Pru in order to pay the invoice.

I suspect most IFAs would like it to be that easy too.   However, it isn't like that. Both the EU (in respect of post Brexit punishment by refusing the offering of services to EU residents) and the UK (for putting a £30k limit on plans with safeguarded benefits) are to blame.

If you are after full withdrawal on a plan with safeguarded benefits, then its also classed as a high risk transaction and most IFAs are not going to want to take on that risk.

So, its a combination of issues.    However, you are not prevented from taking the tax free cash and an annuity on the plan.

So the Pru paperwork states ‘flexi-pension’. Not sure if that helps any?

eastcorkram

@teapotbot

How old are you?

teapotbot

eastcorkram said:

@teapotbot

How old are you?

Just turned 70.