New option added

MTB1986

I was pleasantly surprised yesterday to receive news via the annual newsletter that my old workplace DC pension will offer drawdown as an option upon accessing it from this year onwards. Previously the only options were to buy an annuity, or take it all as a cash lump sum, otherwise transferring it out to a different provider to access other options, as it’s a very old fashioned scheme. As the pension has a protected access age of 55, and I’m planning to use it as a bridge between early retirement and accessing a DB pension at 60, this will make life easier when I get to that point, which is always a bonus.

Always nice to get some pension good news!

El_Torro

Isn't it (sometimes) possible to transfer a pension out while retaining the protected access age?

Either way it's good that you now have more options than you did before with this scheme.

MTB1986

https://forums.moneysavingexpert.com/discussion/comment/81965317#Comment_81965317

Yes, it still seems quite woolly though as to how it’s going to work in practice, and not all providers seem to offer to preserve the protected age, so I’m pleased I won’t have to faff around with that when the time comes.

gm0

It is common for this to happen at relet of admin contracts in recent years. As many of the bidders have a solution which adds drawdown alongside an older trust scheme. Often, in practice - operationally the process of getting the member into drawdown based payment is underneath a transfer.

Such as to a master trust pension with modern (or more modern) IT.

The advantages over open market transfer to an HL or an iWeb or Fidelity or whatever. Can be an easier time on protected ages, use of 100% insured funds and such.

Costs can be good or bad.

Fund range is normally a limitation but likely you can do something that is workable. Even if not your exact "choice" which would require a more full open market DIY or advised approach.

Good luck

Check costs carefully.