DC Pension transfer

Seanster

Hi All. Long time lurker. 
I have a question if I may.

Wish to move a very old (small) DC pot from Royal London. They won't permit me to transfer to another modern Royal London plan. As it's old it needs to be processed manually so I'm looking for:-.

A provider whom

1. Is reliable at transferring and receiving pensions manually.

And

2. Easily supports encashment using the small pots rule (as not to trigger the MPAA)

Not concerned with fund selection.

Thinking AJ Bell. Anyone with experience please?

Thanks all..

DRS1

For some reason I have a picture of someone in a Fedora visiting the offices of AJBell with a suitcase full of white fivers.

It seems very odd that Royal London won't let you transfer to a more modern plan with them.  Manual processing doesn't sound like a good reason (and I don't see why it would be relevant to the receiving scheme).  Is it possible the old plan has some safeguarded rights that you would lose on a transfer?

FIREDreamer

Hargreaves Lansdown will create a £10k small pot from a larger pot. Done it twice with them myself.

dunstonh

Wish to move a very old (small) DC pot from Royal London. They won't permit me to transfer to another modern Royal London plan. As it's old it needs to be processed manually so I'm looking for:-.

RL have no issues with you moving an old RL plan to a modern one.  They do it all the time (I have too including one on the go at the moment).   However, they only distribute their products via IFAs.  They don't have an in-house team for new business.     I think its possible that you have misunderstood what they are saying regarding the reason.  i.e., a plan that doesn't have modern functionality, but they cannot move it to a modern plan themselves.

1. Is reliable at transferring and receiving pensions manually.

All the mainstream providers, including RL, use the automated transfer system.

2. Easily supports encashment using the small pots rule (as not to trigger the MPAA)

Most providers will do that, but some won't support small pots rule and some will charge if you draw them in the first 12 months.    It shouldnt be difficult to check that.

Seanster

FIREDreamer said:

Hargreaves Lansdown will create a £10k small pot from a larger pot. Done it twice with them myself.

Ermm... when I said Aj Bell I was actually thinking Hargreaves Lansdown! I know they can chip a bit off with them. This pot is less than £2k so just want to cash in later in year. 

Seanster

DRS1 said:

For some reason I have a picture of someone in a Fedora visiting the offices of AJBell with a suitcase full of white fivers.

It seems very odd that Royal London won't let you transfer to a more modern plan with them.  Manual processing doesn't sound like a good reason (and I don't see why it would be relevant to the receiving scheme).  Is it possible the old plan has some safeguarded rights that you would lose on a transfer?

IKR. When I consolidated a few years back I left two sub £2k pots with intension of cashing in. I will transfer the other one TO Royal London now and likely this one to HL. As sub 2k not bothered if GAR or other safeguards. 

Seanster

dunstonh said:

Wish to move a very old (small) DC pot from Royal London. They won't permit me to transfer to another modern Royal London plan. As it's old it needs to be processed manually so I'm looking for:-.

RL have no issues with you moving an old RL plan to a modern one.  They do it all the time (I have too including one on the go at the moment).   However, they only distribute their products via IFAs.  They don't have an in-house team for new business.     I think its possible that you have misunderstood what they are saying regarding the reason.  i.e., a plan that doesn't have modern functionality, but they cannot move it to a modern plan themselves.

1. Is reliable at transferring and receiving pensions manually.

All the mainstream providers, including RL, use the automated transfer system.

2. Easily supports encashment using the small pots rule (as not to trigger the MPAA)

Most providers will do that, but some won't support small pots rule and some will charge if you draw them in the first 12 months.    It shouldnt be difficult to check that.

Hmmm. Lady on phone was very clear that I could only transfer out of RL and the "policy" can only be manually transfered, with "3" forms, not using the digital system which they are sending out. obvs im not going to ask an IFA to help with less than £2k. Thank for your input.  Interesting re some charging to "cash out". 

MallyGirl

FIREDreamer said:

Hargreaves Lansdown will create a £10k small pot from a larger pot. Done it twice with them myself.

Me too. I am just waiting on tax relief to be applied so I can do another one 

Albermarle

Seanster said:

FIREDreamer said:

Hargreaves Lansdown will create a £10k small pot from a larger pot. Done it twice with them myself.

Ermm... when I said Aj Bell I was actually thinking Hargreaves Lansdown! I know they can chip a bit off with them. This pot is less than £2k so just want to cash in later in year. 

Aj bell or HL or Fidelity will process a small lot payment, but in all cases you need to ask them specifically to process the withdrawal under the ‘small pots rule’

DRS1

Seanster said:

DRS1 said:

For some reason I have a picture of someone in a Fedora visiting the offices of AJBell with a suitcase full of white fivers.

It seems very odd that Royal London won't let you transfer to a more modern plan with them.  Manual processing doesn't sound like a good reason (and I don't see why it would be relevant to the receiving scheme).  Is it possible the old plan has some safeguarded rights that you would lose on a transfer?

IKR. When I consolidated a few years back I left two sub £2k pots with intension of cashing in. I will transfer the other one TO Royal London now and likely this one to HL. As sub 2k not bothered if GAR or other safeguards. 

Do you really want to transfer a pension TO RL?  The small pots rule applies to pensions under £10k so you could merge both pensions into one with HL and then take it all together in one go.  Or maybe that would put you into paying some/more tax?

Seanster

DRS1 said:

Seanster said:

DRS1 said:

For some reason I have a picture of someone in a Fedora visiting the offices of AJBell with a suitcase full of white fivers.

It seems very odd that Royal London won't let you transfer to a more modern plan with them.  Manual processing doesn't sound like a good reason (and I don't see why it would be relevant to the receiving scheme).  Is it possible the old plan has some safeguarded rights that you would lose on a transfer?

IKR. When I consolidated a few years back I left two sub £2k pots with intension of cashing in. I will transfer the other one TO Royal London now and likely this one to HL. As sub 2k not bothered if GAR or other safeguards. 

Do you really want to transfer a pension TO RL?  The small pots rule applies to pensions under £10k so you could merge both pensions into one with HL and then take it all together in one go.  Or maybe that would put you into paying some/more tax?

I've two small pots that could add to them cat out. Will likely use Aj bell or HL or Fidelity