Move pension/ take 25% ?

carshells

Hello all
A friend, who is not yet at State Pension age, still works part time  and also has a small NHS pension needs a bit of advice. He's already taken a lump sum from his NHS pension (about four years ago) and had forgotten, but has suddenly discovered, that he paid into a Standard life AVC for his NHS pension back in the '90s and it's worth about £29,000.  He would like to take 25% of that and transfer the rest to the very small (probably about £10k) Nest Pension he is currently paying into via his part time job. He's told Standard Life he's like to take 25% and transfer the rest to Nest but they have told him that he needed to speak to Nest. Nest have told him he has to transfer the lot and then take the 25% from them. There are a number of questions here I think ( and I'm sure others will be able to point out pitfalls ( please do!)). Can he take 25% ( without tax implications) even though he's already taken a lump sum ? If so, surely he could simply take 25% from Standard Life and move the rest, at will, to Nest ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?
Thanks so much in advance

Marcon

carshells said:

Nest have told him he has to transfer the lot and then take the 25% from them.

If so, surely he could simply take 25% from Standard Life and move the rest, at will, to Nest 

As he's already been told - no. It's an AVC and he moves the lot, or none of it.

carshells

Marcon said:

carshells said:

Nest have told him he has to transfer the lot and then take the 25% from them.

If so, surely he could simply take 25% from Standard Life and move the rest, at will, to Nest 

As he's already been told - no. It's an AVC and he moves the lot, or none of it.

Thank you, but he could leave it there and take 25% with no issue?

Marcon

carshells said:

Marcon said:

carshells said:

Nest have told him he has to transfer the lot and then take the 25% from them.

If so, surely he could simply take 25% from Standard Life and move the rest, at will, to Nest 

As he's already been told - no. It's an AVC and he moves the lot, or none of it.

Thank you, but he could leave it there and take 25% with no issue?

He'd need to check with the (DB) scheme what his options are.

Albermarle

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

carshells

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

Marcon

carshells said:

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

It's an AVC, which isn't the same thing (sorry!) as a DC pension. He needs to check with his (DB) scheme administrators. Posting here won't get him the definitive answer he needs.

carshells

Marcon said:

carshells said:

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

It's an AVC, which isn't the same thing (sorry!) as a DC pension. He needs to check with his (DB) scheme administrators. Posting here won't get him the definitive answer he needs.

He did call the scheme and they weren't helpful . Thanks for your reponses. He'll try again .

Marcon

carshells said:

Marcon said:

carshells said:

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

It's an AVC, which isn't the same thing (sorry!) as a DC pension. He needs to check with his (DB) scheme administrators. Posting here won't get him the definitive answer he needs.

He did call the scheme and they weren't helpful . Thanks for your reponses. He'll try again .

That's very frustrating for him. I suggest he puts his request in writing and if the response isn't crystal clear (no reason for it not to be - it's a basic enough question for a professional pensions administrator), make a formal complaint. 

dunstonh

carshells said:

Marcon said:

carshells said:

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

It's an AVC, which isn't the same thing (sorry!) as a DC pension. He needs to check with his (DB) scheme administrators. Posting here won't get him the definitive answer he needs.

He did call the scheme and they weren't helpful . Thanks for your reponses. He'll try again .

Providers cannot offer advice or opinion.  They can only respond to factual questions.   This can often seem frustrating or unhelpful but if they don't hold the regulatory permissions, they cannot do it.

So, the wording of the question needs to require no opinion, advice or guidance.   

carshells

dunstonh said:

carshells said:

Marcon said:

carshells said:

Albermarle said:

In general it is more difficult to move a DC pension after you have taken the 25% than before you have taken it.

 ( He's obviously paying fees on SL pension without paying into it)? Is it wise to move from SL to Nest anyway ( it seems to have grown 21% in the last five years)?

You pay fees ( usually a % of the size of the fund) whether you are paying in or not, as the pension is still actively invested.

The growth of a pension entirely relies on how the money is invested within the pension. So you can not compare providers ( Nest , SL etc) on this basis.

Thanks, so when he asked SL about taking 25% then moving it, that's why they didn't give him a clear response I expect (apart from speak to Nest). Otherwise, he could take 25% and leave with SL until he starts to take him pension properly (in a few years).

It's an AVC, which isn't the same thing (sorry!) as a DC pension. He needs to check with his (DB) scheme administrators. Posting here won't get him the definitive answer he needs.

He did call the scheme and they weren't helpful . Thanks for your reponses. He'll try again .

Providers cannot offer advice or opinion.  They can only respond to factual questions.   This can often seem frustrating or unhelpful but if they don't hold the regulatory permissions, they cannot do it.

So, the wording of the question needs to require no opinion, advice or guidance.   

Thanks very much.