Small Pension with a GAR, why can't I transfer it myself?

ReflectionsinaFIAT

Am I right in thinking that as my Transfer Value is under £30k the need for Specialist advice does not apply?

Marcon

ReflectionsinaFIAT said:

Am I right in thinking that as my Transfer Value is under £30k the need for Specialist advice does not apply?

Yes, but that doesn't mean a provider will accept it without confirmation you've had (positive) advice. 'Nice emails' won't alter their business decision if it is not to accept transfers in from schemes with a GAR unless an adviser gives the green light.

As mentioned in my previous answer, stakeholders are the only types of pension scheme required to accept transfers.

ReflectionsinaFIAT

Yes I get it, seems odd that I have just transferred £100k into the plan myself with no Professional Advice, yet I need advice on transferring a trivial amount that 'may' pay a bit more than the 'market leading annuity' max £800 a year.

Albermarle

ReflectionsinaFIAT said:

Yes I get it, seems odd that I have just transferred £100k into the plan myself with no Professional Advice, yet I need advice on transferring a trivial amount that 'may' pay a bit more than the 'market leading annuity' max £800 a year.

That is just the way it is.
However as it is under £30K you do not have to have advice. It is just that your pension provider has set their own rules.

dunstonh

ReflectionsinaFIAT said:

Yes I get it, seems odd that I have just transferred £100k into the plan myself with no Professional Advice, yet I need advice on transferring a trivial amount that 'may' pay a bit more than the 'market leading annuity' max £800 a year.

Its not odd.  If there are no safeguarded benefits, then there is no risk of guarantees being lost that could be highly beneficial.   If there are safeguarded benefits, then there is is the risk.

ReflectionsinaFIAT

Albermarle said:

ReflectionsinaFIAT said:

Yes I get it, seems odd that I have just transferred £100k into the plan myself with no Professional Advice, yet I need advice on transferring a trivial amount that 'may' pay a bit more than the 'market leading annuity' max £800 a year.

That is just the way it is.
However as it is under £30K you do not have to have advice. It is just that your pension provider has set their own rules.

I think they are getting confused with the rules for DB Transfers. They want me to take advice from an IFA and then get a 'positive' from IFA then they will go ahead. I should be able to make that decision myself as it's a DC Pension with a Transfer Value of £14k.

Let's be clear what amount of money A YEAR we are talking about, a vague promise to maybe pay £800 PA compared to £600 if it wasn't a GAR. Hardly life changing?

dunstonh

I think they are getting confused with the rules for DB Transfers. They want me to take advice from an IFA and then get a 'positive' from IFA then they will go ahead. I should be able to make that decision myself as it's a DC Pension with a Transfer Value of £14k.

They are not getting confused.    
You can can make the decision. 
They can refuse to take on the transfer.

Albermarle

ReflectionsinaFIAT said:

Albermarle said:

ReflectionsinaFIAT said:

Yes I get it, seems odd that I have just transferred £100k into the plan myself with no Professional Advice, yet I need advice on transferring a trivial amount that 'may' pay a bit more than the 'market leading annuity' max £800 a year.

That is just the way it is.
However as it is under £30K you do not have to have advice. It is just that your pension provider has set their own rules.

I think they are getting confused with the rules for DB Transfers. They want me to take advice from an IFA and then get a 'positive' from IFA then they will go ahead. I should be able to make that decision myself as it's a DC Pension with a Transfer Value of £14k.

Let's be clear what amount of money A YEAR we are talking about, a vague promise to maybe pay £800 PA compared to £600 if it wasn't a GAR. Hardly life changing?

They are not confused. Over cautious maybe.

ReflectionsinaFIAT

What if I just cashed it in? How much would I get, if I can do this? 
I would have to wait till April for tax reasons but 20% tax on £14k
would leave £11,200?