Transfer DC pension to another provider to access 25% tax free

MyRealNameToo

Chickereeeee said:

which I would agree sounds like an annuity, but maybe a bit young to get the best rate?). I think the plan is to continue working while he is able to.

The younger you buy the lower the rate per month will be but the more months payment you will receive and conversely the older you buy the more per month you'll get but the less months you'll receive. This is calculated on a neutral position so in principle it washes its face over time on average.

Clearly some will die earlier or later than average which may mean what's actually received is different in different circumstances but if we had the perfect crystal ball no one would buy insurance. 

xylophone

He would like a monthly income, 

You mean at some time in the future? At the moment he just wants to take the tax free Pension Commencement Lump Sum?

Perhaps he could consider transfer to a SIPP with the likes of Hargreaves Lansdown?

He could then access the PCLS.

The balance could be invested until such time as an income would be required.

He would have options as to how to take it.

Has he had the Pension Wise interview? 

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

With regard to the choice of investment this article might be of interest

https://www.trustnet.com/news/465309/the-top-performing-pension-funds-revealed

As you manage your own SIPP you might be able to discuss what might be suitable.

Otherwise, Fidelity and Vanguard offer retirement portfolio suggestions.

Does he have a current workplace pension?

Has he obtained a state pension forecast?

https://www.gov.uk/check-state-pension

DRS1

Hargreaves Lansdown also have an annuity service.  This page shows their best rates (though they seem to be on their summer holidays at the moment)

Annuity Rates: View Best Annuity Rates from the UK Market

If he put in his details he could get a more personal quote and unlike some I don't think they follow up with a call.  Pension Wise also has an annuity page which may give different results.

It is not clear to me why his current provider won't allow him to take a lump sum (clearly he is old enough) but it may be an old fashioned policy where he has to take an annuity at the same time as the lump sum.  As suggested above the current provider may well have a more modern scheme available which would allow him to take the tax free cash and put the balance into drawdown (crystallise it).  He should ask them and ask if they know of any reason why he should not transfer his current pension into a more modern scheme (assuming they have one)  

Chickereeeee

Thanks all.
Yes, as I said, he is now in contact with Penions Wise, and has an hour appointment booked.
I have not probed the current company for alternatives, but worth a shot.
Yes, I think he wants the cash soon, but delay withdrawal/annuity decision until unable  to work.

dunstonh

- I think pot is around £100k+

Most IFAs would have no problem with that.   However, some will still consider that low (typically, city firms that focus on higher net worth or wealth management FAs).

 I think the plan is to continue working while he is able to.

That statement there makes him higher risk potentially.  i.e. drawing your pension whilst you are still working often means you cannot afford to live now and are raiding your retirement years but will have even less then.    However, if its part of a phased retirement plan then it should be ok if it is affordable.