Why Am I Forced To Use An IFA to Convert My Personal Pension Into A Flexible Drawdown ?

wjr4

nomorekids said:

Who is it with, we managed with DH by completing the Financial Adviser bit of the form with the lovely lady's details from Pension Wise telephone appointment and that was free 

That would be a different form to the one OP needs. 

Marcon

nomorekids said:

Who is it with, we managed with DH by completing the Financial Adviser bit of the form with the lovely lady's details from Pension Wise telephone appointment and that was free 

Pension Wise does not give financial advice - only guidance. Their input, however useful, will never be accepted where financial advice is mandatory (eg when transferring a pension with safeguarded rights and a transfer value of £30K+).

Albermarle

dunstonh said:

Why Am I Forced To Use An IFA to Convert My Personal Pension Into A Flexible Drawdown ?

A week doesnt seem to go by without another one of these threads.

 I have tried to do this myself on-line but every provider insists that I do it through an IFA

What reason were you given?
Was it:
a) you have safeguarded benefits?
b) you are approaching providers that only transact via IFAs?

I am being quoted around £5000 for an IFA to do this for me which is ridiculous given that I know exactly what I'm trying to acheive and need very little in terms of actual advice.

£5k seems high which suggests that safeguarded benefits are in play.

Does anyone know a way of circumventing this or at least paying a sensible fee for the relatively small amount of work required?

It would help if you told us why you need an IFA.   
And if it is what many of us here suspect then you have a misconception on the level of work and, more importnatly, the level of risk liability.

I do indeed have a 4% guarantee on my Standard Life Section 226 personal pension which I originally took out in around 1987.

Guaranteed growth rates are not a safeguarded benefit and do not need an IFA.     Being a S226 RAC, could it be guranteed annuity rates? (Very common on RACs)

 I tried doing it online with the likes of Vanguard and Royal London but they also will only do it through an IFA. 

Vanguard's pension is not retailed via IFAs.   Royal London is.

Maybe the guarantee is the stumbling box ?

No.

RL and SL don't retail a product offering drawdown direct to consumers.  So, that would explain them.   However, Vanguard's pension is a direct to consumer product.  So, they would take it as long as there are no safeguarded benefits.

Or are you asking for a drawdown method that is not available via many direct to consumer products.  e.g. regular UFPLS.  

RL and SL don't retail a product offering drawdown direct to consumers.  So, that would explain them.   However, Vanguard's pension is a direct to consumer product.  So, they would take it as long as there are no safeguarded benefits.

The Standard Life retail platform ( owned by Phoenix), does offer a drawdown product direct to consumers.
Pension Drawdown | Standard Life

dunstonh

nomorekids said:

Who is it with, we managed with DH by completing the Financial Adviser bit of the form with the lovely lady's details from Pension Wise telephone appointment and that was free 

That would be a fraudulent declaration and a sackable offence.      The receiving scheme wouldn't accept it as they check the FCA number of the adviser.

So, it's more likely you are not referring to a form that needs to be signed by an FA/IFA.